6-K 1 d142954d6k.htm FORM 6-K Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2020

Commission File Number 001-33098

Mizuho Financial Group, Inc.

(Translation of registrant’s name into English)

5-5, Otemachi 1-chome

Chiyoda-ku, Tokyo 100-8176

Japan

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒    Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐    No ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-                    .

 

 

 


THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE INTO THE PROSPECTUS FORMING A PART OF MIZUHO FINANCIAL GROUP, INC.’S REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-233354) AND TO BE A PART OF SUCH PROSPECTUS FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: November 12, 2020
Mizuho Financial Group, Inc.
By:  

/s/ Makoto Umemiya

Name:   Makoto Umemiya
Title:   Senior Managing Executive Officer / Group CFO


For Immediate Release:

 

  

Consolidated Financial Statements for the Second Quarter of Fiscal 2020

(Six months ended September 30, 2020)

(Under Japanese GAAP)

   LOGO

 

Company Name:    Mizuho Financial Group, Inc. (“MHFG”)    November 12, 2020
Stock Code Number (Japan):       8411    
Stock Exchange Listings:   Tokyo Stock Exchange (First Section), New York Stock Exchange
URL:   https://www.mizuho-fg.com/index.html  
Representative:   Tatsufumi Sakai            President & CEO  
For Inquiry:   Tomomichi Fujita            General Manager of Accounting   Phone: +81-3-6838-6101     

Filing of Shihanki Hokokusho (scheduled):

           November 27, 2020   Trading Accounts: Established            

Commencement of Dividend Payment (scheduled):

 

         December 7, 2020

 

Supplementary Materials on Quarterly Results:

 

         Attached

 

IR Conference on Quarterly Results:

 

         Scheduled

 

Amounts less than one million yen are rounded down.

1. Financial Highlights for the Second Quarter (First Half) of Fiscal 2020 (for the six months ended September 30, 2020)

(1) Consolidated Results of Operations

 

     (%: Changes from the previous first half)  
     Ordinary Income     Ordinary Profits     Profit Attributable to
Owners of Parent
 
     ¥ million      %     ¥ million      %     ¥ million      %  

1H F2020

     1,576,761        (20.6     267,610        (32.5     215,523        (25.0

1H F2019

     1,987,425        (0.3     396,471        (15.0     287,668        (19.9

 

Note:

  Comprehensive Income: 1H F2020: ¥376,172 million, 97.5%; 1H F2019: ¥190,448 million, (19.2)%

 

     Net Income
per Share of
Common Stock
     Diluted Net Income
per Share of
Common Stock
 
     ¥      ¥  

1H F2020

     84.99        84.98  

1H F2019

     113.43        113.42  

 

Note:

  

MHFG adopted the share consolidation of the shares of common stock on the basis of one post-consolidation share per ten pre-consolidation shares effective as of October 1, 2020.

The impact from the share consolidation is reflected in Net Income per Share of Common Stock and Diluted Net Income per Share of Common Stock.

(2) Consolidated Financial Conditions

 

     Total Assets      Total Net Assets      Own Capital Ratio  
     ¥ million      ¥ million      %  

1H F2020

     221,045,717        8,905,205        3.9  

Fiscal 2019

     214,659,077        8,663,847        3.9  

 

Reference:

   Own Capital: As of September 30, 2020: ¥8,802,877 million; As of March 31, 2020: ¥8,553,971 million

Note:

  

Own Capital Ratio is calculated as follows: (Total Net Assets - Stock Acquisition Rights - Non-controlling Interests) / Total Assets × 100

Own Capital Ratio stated above is not calculated based on the public notice of Own Capital Ratio.

2. Cash Dividends for Shareholders of Common Stock

 

     Annual Cash Dividends per Share  
     First
Quarter-end
     Second
Quarter-end
     Third
Quarter-end
     Fiscal
Year-end
     Total  
     ¥      ¥      ¥      ¥      ¥  

Fiscal 2019

     —          3.75        —          3.75        7.50  

Fiscal 2020

     —          3.75           

Fiscal 2020 (estimate)

           —          37.50        —    

 

Notes:

  1.   Revision of the latest announced estimates for cash dividends for shareholders of common stock : No
  2.   MHFG adopted the share consolidation of the shares of common stock on the basis of one post-consolidation share per ten pre-consolidation shares effective as of October 1, 2020.

The impact from the share consolidation is reflected in the estimate of Cash Dividends per Share of Common Stock for the end of fiscal 2020. If the share consolidation were not taken into consideration, it would be ¥3.75.

In addition, MHFG left the value of total annual dividend blank (—) as it is inappropriate simply to total the value of the dividend at the end of the first half of fiscal 2020 and the value of the dividend at the end of the fiscal 2020.

3. Consolidated Earnings Estimates for Fiscal 2020 (for the fiscal year ending March 31, 2021)

 

     (%: Changes from the previous fiscal year)  
     Profit Attributable to
Owners of Parent
    Net Income
per Share of
Common Stock
 
     ¥ million      %     ¥  

Fiscal 2020

     350,000        (21.9     138.02  

 

Notes:

  1.   Revision of the latest announced earnings estimates for fiscal 2020: Yes

Following the result from 1H,MHFG revised Consolidated Earnings Estimates for fiscal 2020 (for the fiscal year ending March 31, 2021).

Profit Attributable to Owners of Parent: The latest announced estimates: ¥320,000 million, Revised estimates: ¥350,000 million, Changes from the original estimates: ¥30,000 million, 9.3%

  2.   MHFG adopted the share consolidation of the shares of common stock on the basis of one post-consolidation share per ten pre-consolidation shares effective as of October 1, 2020. The number of share of common stock used in above per share information is based on the weighted average of the average number of outstanding shares during 1H and the number of outstanding shares as of September 30, 2020 (which is used as a proxy for the average number of outstanding shares during 2H).

If the share consolidation were not taken into consideration, the Consolidated Earnings Estimates for Net Income per Share of Common Stock for Fiscal 2020 (for the fiscal year ending March 31, 2021) would be ¥13.80.


Notes

 

(1) 

Changes in Significant Subsidiaries during the Period (changes in specified subsidiaries accompanying changes in the scope of consolidation): No

(2) Changes in Accounting Policies and Accounting Estimates / Restatements

 

  i.

Changes in accounting policies due to revisions of accounting standards: No

 

  ii.

Changes in accounting policies other than i above: Yes

 

  iii.

Changes in accounting estimates: No

 

  iv.

Restatements: No

 

  Note:

For more information, please refer to “1.(1) Changes in Accounting Policies and Accounting Estimates / Restatements” on page 1-2 of the attachment.

(3) Issued Shares of Common Stock

 

i. Period-end issued shares
(including treasury stock):

     As of September 30, 2020        2,539,249,894 shares        As of March 31, 2020        2,539,249,894 shares  

ii. Period-end treasury stock:

     As of September 30, 2020        3,868,308 shares        As of March 31, 2020        3,210,681 shares  

iii. Average outstanding shares:

     1st Half Fiscal 2020        2,535,837,918 shares        1st Half Fiscal 2019        2,535,955,016 shares  

 

  Note:

MHFG adopted the share consolidation of the shares of common stock on the basis of one post-consolidation share per ten pre-consolidation shares effective as of October 1, 2020. The impact from the share consolidation is reflected in the number of Period-end issued shares (including treasury stock), Period-end treasury stock and Average outstanding shares.

This immediate release is outside the scope of semi-annual audit by certified public accountants or audit firms.

 

 

This immediate release contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.

In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.

We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation: impact of the corona virus pandemic; incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; impairment of the carrying value of our long-lived assets; problems related to our information technology systems, including as a result of cyber attacks; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels and meet other financial regulatory requirements; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our 5-Year Business Plan and implement other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations.

Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3. D. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”), which is available in the Financial Information section of our web page at www.mizuho-fg.com/index.html and also at the SEC’s web site at www.sec.gov.

We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

MHFG is a specified business company under “Cabinet Office Ordinance on Disclosure of Corporate Information, etc.” Article 17-15 clause 2 and prepares the interim consolidated financial statements in the second quarter.

 

 

 


Mizuho Financial Group, Inc.

 

m Contents of Attachment

 

1.   Matters Related to Summary Information (Notes)      p.1-2  
  (1) Changes in Accounting Policies and Accounting Estimates / Restatements      p.1-2  
2.   Interim Consolidated Financial Statements and Others      p.1-3  
  (1) Consolidated Balance Sheets      p.1-3  
  (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income      p.1-5  
  (3) Consolidated Statements of Changes in Net Assets      p.1-7  
  (4) Note for Assumption of Going Concern      p.1-8  
  ø SELECTED FINANCIAL INFORMATION For the Second Quarter (First Half) of Fiscal 2020   

Note to XBRL

Please note that the names of the English accounts contained in XBRL data, which are available through EDINET and TDNet, may be different from those of the English accounts in our financial statements.

An MHFG IR conference for institutional investors and analysts is scheduled for Thursday, November 19, 2020. The IR conference presentation materials and audio archive will be available for use by individual investors in the IR Information section of the Mizuho Financial Group website immediately after the conference.

 

1-1


Mizuho Financial Group, Inc.

 

1. Matters Related to Summary Information (Notes)

(1) Changes in Accounting Policies and Accounting Estimates / Restatements

(Changes in Accounting Policies)

(Accounting Standard for Fair Value Measurement and Others)

MHFG has applied “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30 July 4, 2019) and others from the beginning of the interim period ended September 30, 2020.

In accordance with Article 8 of “Accounting Standard for Fair Value Measurement”, the fair value adjustment method used to determine the fair value of derivatives is revised to maximize the use of relevant observable inputs estimated from derivatives and others traded in the market.

In accordance with Article 20 of “Accounting Standard for Fair Value Measurement”, the cumulative effects arising from the retroactive application of these new accounting policies to all the previous fiscal years were reflected in Retained Earnings as of April 1, 2020.

As a result, Retained Earnings decreased by ¥32,639 million, Trading Assets decreased by ¥50,380 million, Derivatives other than for Trading Assets decreased by ¥6,379 million, Trading Liabilities decreased by ¥6,529 million, Derivatives other than for Trading Liabilities decreased by ¥3,184 million, Deferred Tax Assets increased by ¥14,405 million, and Net Assets per Share decreased by ¥12.87 as of April 1, 2020. The share consolidation was taken place at a ratio of ten pre-consolidation shares to one post-consolidation share on October 1, 2020. Net Asset per share is calculated under the assumption that the share consolidation had been taken place at the beginning of fiscal 2019.

And in accordance with the transitional treatment set forth in Article 19 of “Accounting Standard for Fair Value Measurement” and Article 44-2 of “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), MHFG has applied a new accounting policy prescribed by “Accounting Standard for Fair Value Measurement” and others from the interim period ended September 30, 2020.

As a result, in principle, while fair value of Japanese stocks was previously determined based on the average quoted market price over the month preceding the interim consolidated balance sheet date, from the end of the interim period ended September 30, 2020, fair value of Japanese stocks is determined based on the quoted market price as of the interim consolidated balance sheet date.

 

1-2


Mizuho Financial Group, Inc.

 

2. Interim Consolidated Financial Statements and Others

(1) Consolidated Balance Sheets

 

     Millions of yen  
     As of
   March 31, 2020   
    As of
September 30, 2020
 

Assets

    

Cash and Due from Banks

   ¥ 41,069,745     ¥ 42,498,278  

Call Loans and Bills Purchased

     584,686       243,267  

Receivables under Resale Agreements

     18,581,488       12,666,551  

Guarantee Deposits Paid under Securities Borrowing Transactions

     2,243,161       2,190,799  

Other Debt Purchased

     2,688,273       2,676,047  

Trading Assets

     13,248,734       14,564,434  

Money Held in Trust

     411,847       471,782  

Securities

     34,907,234       43,314,534  

Loans and Bills Discounted

     83,468,185       86,501,633  

Foreign Exchange Assets

     2,044,415       1,936,636  

Derivatives other than for Trading Assets

     1,944,060       1,439,293  

Other Assets

     5,206,121       4,413,001  

Tangible Fixed Assets

     1,103,622       1,101,614  

Intangible Fixed Assets

     636,139       619,695  

Net Defined Benefit Asset

     846,782       924,167  

Deferred Tax Assets

     32,493       23,368  

Customers’ Liabilities for Acceptances and Guarantees

     6,066,527       5,938,130  

Reserves for Possible Losses on Loans

     (424,446     (477,516

Reserve for Possible Losses on Investments

     —         (0
  

 

 

   

 

 

 

Total Assets

   ¥ 214,659,077     ¥ 221,045,717  
  

 

 

   

 

 

 

 

1-3


Mizuho Financial Group, Inc.

 

     Millions of yen  
     As of
   March 31, 2020   
    As of
September 30, 2020
 

Liabilities

    

Deposits

   ¥ 131,189,673     ¥ 134,665,825  

Negotiable Certificates of Deposit

     13,282,561       14,201,308  

Call Money and Bills Sold

     2,263,076       1,903,686  

Payables under Repurchase Agreements

     17,971,098       19,326,350  

Guarantee Deposits Received under Securities Lending Transactions

     1,108,255       1,244,440  

Commercial Paper

     411,089       921,282  

Trading Liabilities

     9,604,890       8,487,342  

Borrowed Money

     5,209,947       7,275,166  

Foreign Exchange Liabilities

     509,405       402,476  

Short-term Bonds

     373,658       331,447  

Bonds and Notes

     8,906,432       9,639,781  

Due to Trust Accounts

     1,055,510       1,336,263  

Derivatives other than for Trading Liabilities

     1,619,151       1,274,444  

Other Liabilities

     6,111,195       4,815,831  

Reserve for Bonus Payments

     75,175       55,860  

Reserve for Variable Compensation

     2,559       1,467  

Net Defined Benefit Liability

     62,113       71,950  

Reserve for Director and Corporate Auditor Retirement Benefits

     944       635  

Reserve for Possible Losses on Sales of Loans

     637       1,142  

Reserve for Contingencies

     6,443       4,180  

Reserve for Reimbursement of Deposits

     27,851       25,205  

Reserve for Reimbursement of Debentures

     18,672       17,663  

Reserves under Special Laws

     2,509       2,506  

Deferred Tax Liabilities

     53,150       133,564  

Deferred Tax Liabilities for Revaluation Reserve for Land

     62,695       62,555  

Acceptances and Guarantees

     6,066,527       5,938,130  
  

 

 

   

 

 

 

Total Liabilities

   ¥ 205,995,229     ¥ 212,140,512  
  

 

 

   

 

 

 

Net Assets

    

Common Stock

   ¥ 2,256,767     ¥ 2,256,767  

Capital Surplus

     1,136,467       1,135,948  

Retained Earnings

     4,174,190       4,260,606  

Treasury Stock

     (6,414     (7,025
  

 

 

   

 

 

 

Total Shareholders’ Equity

     7,561,010       7,646,297  
  

 

 

   

 

 

 

Net Unrealized Gains (Losses) on Other Securities

     823,085       1,038,781  

Deferred Gains or Losses on Hedges

     72,081       66,262  

Revaluation Reserve for Land

     136,655       137,834  

Foreign Currency Translation Adjustments

     (133,178     (170,773

Remeasurements of Defined Benefit Plans

     94,317       84,475  
  

 

 

   

 

 

 

Total Accumulated Other Comprehensive Income

     992,960       1,156,580  
  

 

 

   

 

 

 

Stock Acquisition Rights

     213       134  

Non-Controlling Interests

     109,662       102,192  
  

 

 

   

 

 

 

Total Net Assets

     8,663,847       8,905,205  
  

 

 

   

 

 

 

Total Liabilities and Net Assets

   ¥ 214,659,077     ¥ 221,045,717  
  

 

 

   

 

 

 

 

1-4


Mizuho Financial Group, Inc.

 

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

Consolidated Statements of Income

 

     Millions of yen  
     For the six
months ended

September 30, 2019
    For the six
months ended

September 30, 2020
 

Ordinary Income

   ¥ 1,987,425     ¥ 1,576,761  

Interest Income

     1,062,855       693,651  

Interest on Loans and Bills Discounted

     646,722       490,811  

Interest and Dividends on Securities

     138,351       122,600  

Fiduciary Income

     27,756       27,143  

Fee and Commission Income

     360,492       397,087  

Trading Income

     194,433       238,219  

Other Operating Income

     224,188       156,922  

Other Ordinary Income

     117,699       63,736  

Ordinary Expenses

     1,590,953       1,309,150  

Interest Expenses

     686,238       253,522  

Interest on Deposits

     261,393       91,376  

Fee and Commission Expenses

     84,392       77,475  

Trading Expenses

     2,533       1,455  

Other Operating Expenses

     65,839       68,248  

General and Administrative Expenses

     670,592       681,287  

Other Ordinary Expenses

     81,357       227,161  
  

 

 

   

 

 

 

Ordinary Profits

     396,471       267,610  
  

 

 

   

 

 

 

Extraordinary Gains

     1,252       72,735  

Extraordinary Losses

     6,252       6,955  
  

 

 

   

 

 

 

Income before Income Taxes

     391,471       333,391  
  

 

 

   

 

 

 

Income Taxes:

    

Current

     85,576       74,186  

Deferred

     10,593       41,813  
  

 

 

   

 

 

 

Total Income Taxes

     96,169       116,000  
  

 

 

   

 

 

 

Profit

     295,302       217,390  
  

 

 

   

 

 

 

Profit Attributable to Non-controlling Interests

     7,633       1,867  
  

 

 

   

 

 

 

Profit Attributable to Owners of Parent

   ¥ 287,668      ¥ 215,523   
  

 

 

   

 

 

 

 

1-5


Mizuho Financial Group, Inc.

 

Consolidated Statements of Comprehensive Income

 

     Millions of yen  
     For the six
months ended

September 30, 2019
    For the six
months ended

September 30, 2020
 

Profit

   ¥    295,302     ¥    217,390  

Other Comprehensive Income

     (104,853     158,782  

Net Unrealized Gains (Losses) on Other Securities

     (122,173     212,348  

Deferred Gains or Losses on Hedges

     74,719       (5,843

Foreign Currency Translation Adjustments

     (34,547     (36,529

Remeasurements of Defined Benefit Plans

     (20,957     (9,851

Share of Other Comprehensive Income of Associates Accounted for Using Equity Method

     (1,894     (1,341
  

 

 

   

 

 

 

Comprehensive Income

     190,448       376,172  
  

 

 

   

 

 

 

(Breakdown)

    

Comprehensive Income Attributable to Owners of Parent

     184,486       377,963  

Comprehensive Income Attributable to Non-controlling Interests

     5,962       (1,791

 

1-6


Mizuho Financial Group, Inc.

 

(3) Consolidated Statements of Changes in Net Assets

For the six months ended September 30, 2019

 

     Millions of yen  
     Shareholders’ Equity  
   Common
Stock
     Capital
Surplus
    Retained
Earnings
    Treasury
Stock
    Total
Shareholders’
Equity
 

Balance as of the beginning of the period

     2,256,767        1,138,449       3,915,521       (7,703     7,303,034  

Changes during the period

           

Cash Dividends

          (95,197       (95,197

Profit Attributable to Owners of Parent

          287,668         287,668  

Repurchase of Treasury Stock

            (1,850     (1,850

Disposition of Treasury Stock

        (625       2,744       2,119  

Transfer from Revaluation Reserve for Land

          55         55  

Change in Treasury Shares of Parent Arising from Transactions with Non-controlling Shareholders

        (885         (885

Transfer from Retained Earnings to Capital Surplus

        611       (611       —    

Net Changes in Items other than Shareholders’ Equity

           

Total Changes during the period

     —          (899     191,915       893       191,910  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of the end of the period

     2,256,767        1,137,550       4,107,437       (6,809     7,494,945  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

    Accumulated Other Comprehensive Income     Stock
Acquisition
Rights
    Non-
Controlling
Interests
    Total
Net
Assets
 
  Net
Unrealized
Gains
(Losses) on
Other
Securities
    Deferred
Gains or
Losses on
Hedges
    Revaluation
Reserve for
Land
    Foreign
Currency
Translation
Adjustments
    Remeasurements
of Defined

Benefit Plans
    Total
Accumulated
Other
Comprehensive
Income
 

Balance as of the beginning of the period

    1,186,401       (22,282     137,772       (111,057     254,936       1,445,770       707       444,525       9,194,038  

Changes during the period

                 

Cash Dividends

                    (95,197

Profit Attributable to Owners of Parent

                    287,668  

Repurchase of Treasury Stock

                    (1,850

Disposition of Treasury Stock

                    2,119  

Transfer from Revaluation Reserve for Land

                    55  

Change in Treasury Shares of Parent Arising from Transactions with Non-controlling Shareholders

                    (885

Transfer from Retained Earnings to Capital Surplus

                    —    

Net Changes in Items other than Shareholders’ Equity

    (119,652     74,670       (55     (37,096     (21,104     (103,238     (493     (308,279     (412,010

Total Changes during the period

    (119,652     74,670       (55     (37,096     (21,104     (103,238     (493     (308,279     (220,100
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of the end of the period

    1,066,749       52,387       137,716       (148,153     233,831       1,342,532       213       136,245       8,973,937  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

1-7


Mizuho Financial Group, Inc.

 

For the six months ended September 30, 2020

 

     Millions of yen  
     Shareholders’ Equity  
     Common
Stock
     Capital
Surplus
    Retained
Earnings
    Treasury
Stock
    Total
Shareholders’
Equity
 

Balance as of the beginning of the period

     2,256,767        1,136,467       4,174,190       (6,414     7,561,010  

Cumulative Effects of Changes in Accounting Policies

          (32,639       (32,639

Balance as of the beginning of the period reflecting Changes in Accounting Policies

     2,256,767        1,136,467       4,141,550       (6,414     7,528,370  

Changes during the period

           

Cash Dividends

          (95,208       (95,208

Profit Attributable to Owners of Parent

          215,523         215,523  

Repurchase of Treasury Stock

            (1,995     (1,995

Disposition of Treasury Stock

        (80       1,385       1,305  

Transfer from Revaluation Reserve for Land

          (1,178       (1,178

Change in Treasury Shares of Parent Arising from Transactions with Non-controlling Shareholders

        (519         (519

Transfer from Retained Earnings to Capital Surplus

        80       (80       —    

Net Changes in Items other than Shareholders’ Equity

           

Total Changes during the period

     —          (519     119,056       (610     117,926  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of the end of the period

     2,256,767        1,135,948       4,260,606       (7,025     7,646,297  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

 

    Accumulated Other Comprehensive Income                    
    Net
Unrealized
Gains
(Losses) on
Other
Securities
    Deferred
Gains or
Losses on
Hedges
    Revaluation
Reserve for
Land
    Foreign
Currency
Translation
Adjustments
    Remeasurements
of Defined

Benefit Plans
    Total
Accumulated
Other
Comprehensive
Income
    Stock
Acquisition
Rights
    Non-
Controlling
Interests
    Total
Net
Assets
 

Balance as of the beginning of the period

    823,085       72,081       136,655       (133,178     94,317       992,960       213       109,662       8,663,847  

Cumulative Effects of Changes in Accounting Policies

              —             (32,639

Balance as of the beginning of the period reflecting Changes in Accounting Policies

    823,085       72,081       136,655       (133,178     94,317       992,960       213       109,662       8,631,208  

Changes during the period

                 

Cash Dividends

                    (95,208

Profit Attributable to Owners of Parent

                    215,523  

Repurchase of Treasury Stock

                    (1,995

Disposition of Treasury Stock

                    1,305  

Transfer from Revaluation Reserve for Land

                    (1,178

Change in Treasury Shares of Parent Arising from Transactions with Non-controlling Shareholders

                    (519

Transfer from Retained Earnings to Capital Surplus

                    —    

Net Changes in Items other than Shareholders’ Equity

    215,696       (5,819     1,178       (37,594     (9,842     163,619       (79     (7,469     156,070  

Total Changes during the period

    215,696       (5,819     1,178       (37,594     (9,842     163,619       (79     (7,469     273,997  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of the end of the period

    1,038,781        66,262       137,834        (170,773     84,475       1,156,580        134       102,192       8,905,205  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(4) Note for Assumption of Going Concern

There is no applicable information.

 

1-8


SELECTED FINANCIAL INFORMATION

For the Second Quarter (First Half) of Fiscal 2020

(Six months ended September 30, 2020)

(Under Japanese GAAP)

 

 

 

LOGO

Mizuho Financial Group, Inc.


C O N T E N T S

 

 

Notes:

“CON”: Consolidated figures for Mizuho Financial Group, Inc. (MHFG)

“NON”: Non-consolidated figures for Mizuho Financial Group, Inc.,  Mizuho Bank, Ltd. (MHBK) and Mizuho Trust & Banking Co., Ltd. (MHTB)

 

 

 

I. FINANCIAL DATA FOR THE FIRST HALF OF FISCAL 2020

   See above Notes      Page  

1. Income Analysis

     CON        NON        2-1    

2. Interest Margins (Domestic Operations)

     NON           2-5    

3. Use and Source of Funds

     NON           2-6    

4. Net Gains/Losses on Securities

     CON        NON        2-8    

5. Unrealized Gains/Losses on Securities

     CON        NON        2-10    

6. Projected Redemption Amounts for Securities

     NON           2-12    

7. Overview of Derivative Transactions Qualifying for Hedge Accounting

     NON           2-13    

8. Employee Retirement Benefits

     NON        CON        2-14    

9. Capital Ratio

     CON        NON        2-17    

 

II. REVIEW OF CREDITS

   See above Notes      Page  

1. Status of Non-Accrual, Past Due & Restructured Loans

     CON        NON        2-18    

2. Status of Reserves for Possible Losses on Loans

     CON        NON        2-20    

3. Reserve Ratios for Non-Accrual, Past Due & Restructured Loans

     CON        NON        2-21    

4. Status of Non Performing Loans based on the Financial Reconstruction Act(“FRA”)

     CON        NON        2-22    

5. Coverage on Non Performing Loans based on the FRA

     NON           2-24    

6. Overview of Non-Performing Loans(“NPLs”)

     NON           2-27    

7. Results of Removal of NPLs from the Balance Sheet

     NON           2-28    

8. Status of Loans by Industry

        

(1)   Outstanding Balances and Non-Accrual, Past Due & Restructured Loans by Industry

     NON           2-29    

(2)   Non Performing Loans based on the FRA and Coverage Ratio by Industry

     NON           2-31    

9. Housing and Consumer Loans & Loans to Small and Medium-Sized Enterprises (“SMEs”) and Individual Customers

        

(1)   Balance of Housing and Consumer Loans

     NON           2-32    

(2)   Loans to SMEs and Individual Customers

     NON           2-32    

10. Status of Loans by Region

     NON           2-33    

III. DEFERRED TAXES

   See above Notes      Page  

1. Estimation for Calculating Deferred Tax Assets

     NON           2-34    

IV. OTHERS

   See above Notes      Page  

1. Breakdown of Deposits (Domestic Offices)

     NON           2-36    

2. Number of Directors and Employees

           2-37    

3. Number of Offices

           2-37    

4. Earnings Plan for Fiscal 2020

     CON        NON        2-38    


Attachments

               Page  

Mizuho Bank, Ltd.

      

Comparison of Non-Consolidated Balance Sheets (selected items)

         2-39    

Comparison of Non-Consolidated Statements of Income (selected items)

                           2-40    

Mizuho Trust & Banking Co., Ltd.

      

Comparison of Non-Consolidated Balance Sheets (selected items)

         2-41    

Comparison of Non-Consolidated Statements of Income (selected items)

         2-42    

Statement of Trust Assets and Liabilities

         2-43    

Comparison of Balances of Principal Items

         2-44    

Mizuho Securities Co., Ltd.

      

Comparison of Non-Consolidated Balance Sheets (selected items)

         2-45    

Comparison of Non-Consolidated Statements of Income (selected items)

         2-46    

 

 

This immediate release contains statements that constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, including estimates, forecasts, targets and plans. Such forward-looking statements do not represent any guarantee by management of future performance.

In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “endeavor,” “estimate,” “expect,” “intend,” “may,” “plan,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target” and similar expressions in relation to us or our management to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions.

We may not be successful in implementing our business strategies, and management may fail to achieve its targets, for a wide range of possible reasons, including, without limitation: impact of the corona virus pandemic; incurrence of significant credit-related costs; declines in the value of our securities portfolio; changes in interest rates; foreign currency fluctuations; decrease in the market liquidity of our assets; revised assumptions or other changes related to our pension plans; a decline in our deferred tax assets; impairment of the carrying value of our long-lived assets; problems related to our information technology systems, including as a result of cyber attacks; the effect of financial transactions entered into for hedging and other similar purposes; failure to maintain required capital adequacy ratio levels and meet other financial regulatory requirements; downgrades in our credit ratings; our ability to avoid reputational harm; our ability to implement our 5-Year Business Plan and implement other strategic initiatives and measures effectively; the effectiveness of our operational, legal and other risk management policies; the effect of changes in general economic conditions in Japan and elsewhere; and changes to applicable laws and regulations.

Further information regarding factors that could affect our financial condition and results of operations is included in “Item 3.D. Key Information—Risk Factors” and “Item 5. Operating and Financial Review and Prospects” in our most recent Form 20-F filed with the U.S. Securities and Exchange Commission (“SEC”), which is available in the Financial Information section of our web page at www.mizuho-fg.com/index.html and also at the SEC’s web site at www.sec.gov.

We do not intend to update our forward-looking statements. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by the rules of the Tokyo Stock Exchange.

MHFG is a specified business company under “Cabinet Office Ordinance on Disclosure of Corporate Information, etc.” Article 17-15 clause 2 and prepares the interim consolidated financial statements in the second quarter.

 


Mizuho Financial Group, Inc.

 

I. FINANCIAL DATA FOR THE FIRST HALF OF FISCAL 2020

1. Income Analysis

Consolidated

 

            (Millions of yen)  
            First Half of Fiscal 2020     First Half of
Fiscal 2019
 
                  Change  

Consolidated Gross Profits

     1        1,112,323       81,600       1,030,722  

Net Interest Income

     2        440,129       63,512       376,617  

Fiduciary Income

     3        27,143       (612     27,756  

Credit Costs for Trust Accounts

     4        —         —         —    

Net Fee and Commission Income

     5        319,611       43,511       276,100  

Net Trading Income

     6        236,764       44,864       191,899  

Net Other Operating Income

     7        88,673       (69,675     158,349  

General and Administrative Expenses

     8        (681,287     (10,695     (670,592

Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Losses on Loans)

     9        (84,777     (65,635     (19,142

Losses on Write-offs of Loans

     10        (7,444     5,556       (13,001

Gains on Reversal of Reserves for Possible Losses on Loans, and others

     11        3,555       (4,360     7,915  

Net Gains (Losses) related to Stocks

     12        (69,490     (116,909     47,418  

Equity in Income from Investments in Affiliates

     13                11,559       (7,549     19,109  

Other

     14        (24,271     (5,312     (18,959
     

 

 

   

 

 

   

 

 

 

Ordinary Profits

     15        267,610       (128,861     396,471  
     

 

 

   

 

 

   

 

 

 

Net Extraordinary Gains (Losses)

     16        65,780       70,780       (5,000

Income before Income Taxes

     17        333,391       (58,080     391,471  

Income Taxes—Current

     18        (74,186     11,389       (85,576

— Deferred

     19        (41,813     (31,220     (10,593

Profit

     20        217,390       (77,911     295,302  

Profit Attributable to Non-controlling Interests

     21        (1,867     5,766       (7,633
     

 

 

   

 

 

   

 

 

 

Profit Attributable to Owners of Parent

     22        215,523       (72,145             287,668  
     

 

 

   

 

 

   

 

 

 

Credit-related Costs (including Credit Costs for Trust Accounts)

     23        (81,222     (69,995     (11,226

Credit-related Costs [23] =     Expenses related to Portfolio Problems (including Reversal of (Provision for) General Reserve for Losses on Loans) [9] + Gains on Reversal of Reserves for Possible Losses on Loans, and others [11] + Credit Costs for Trust Accounts [4]

 

Reference:

 

Consolidated Net Business Profits

     24              438,448          89,612               348,836   

Consolidated Net Business Profits [24] =     Consolidated Gross Profits [1] – General and Administrative Expenses (excluding Non-Recurring Losses) + Equity in Income from Investments in Affiliates and certain other consolidation adjustments

 

Number of consolidated subsidiaries

     25        153        31                    122   

Number of affiliates under the equity method

     26        26        —         26  

 

2-1


Mizuho Financial Group, Inc.

 

Aggregate Figures for the 2 Banks

Non-Consolidated

 

            (Millions of yen)  
            First Half of Fiscal 2020     First Half  
            MHBK     MHTB     Aggregate
Figures
    Change     of Fiscal
2019
 

Gross Profits

     1        694,993       59,926       754,920       20,916       734,004  

Domestic Gross Profits

     2        334,010       51,978       385,989       (26,688     412,677  

Net Interest Income

     3        198,312       10,153       208,466       (16,811     225,277  

Fiduciary Income

     4          27,277       27,277       (641     27,919  

Trust Fees for Jointly Operated Designated Money Trust

     5          2,024       2,024       (151     2,175  

Credit Costs for Trust Accounts (1)

     6          —         —         —         —    

Net Fee and Commission Income

     7        130,100       12,623       142,724       19,141       123,582  

Net Trading Income (2)

     8        9,966       1,172       11,139       5,333       5,806  

Net Other Operating Income

     9        (4,369     751       (3,618     (33,710     30,092  

International Gross Profits

     10        360,983       7,947       368,930       47,604       321,326  

Net Interest Income

     11        179,471       3,313       182,785       68,576       114,208  

Net Fee and Commission Income

     12        71,830       (352     71,477       5,247       66,230  

Net Trading Income (2)

     13        63,299       (683     62,615       681       61,933  

Net Other Operating Income

     14        46,381       5,670       52,051       (26,900     78,952  

General and Administrative Expenses (excluding Non-Recurring Losses)

     15        (399,162     (41,098     (440,260     9,633       (449,894

Expense Ratio

     16        57.4     68.5     58.3     (2.9 %)       61.2 %  

Personnel Expenses

     17        (154,180     (19,590     (173,771     7,784       (181,555

Non-Personnel Expenses

     18        (220,976     (19,848     (240,825     662       (241,488

Premium for Deposit Insurance

     19        (16,083     (636     (16,720     (503     (16,216

Miscellaneous Taxes

     20        (24,005     (1,659     (25,664     1,186       (26,851
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans)

     21        295,831       18,828       314,659       30,549       284,109  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) from core business areas (3)

     22        257,750       12,425       270,176       82,728       187,447  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Excluding Net Gains (Losses) from redemption of Investment Trusts

     23        256,064       11,923       267,988       82,552       185,435  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reversal of (Provision for) General Reserve for Losses on Loans

     24        (60,866     —         (60,866     (47,525     (13,341
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Business Profits

     25        234,964       18,828       253,792       (16,975     270,768  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Gains (Losses) related to Bonds

     26        38,080       6,402       44,483       (52,178     96,661  

Net Non-Recurring Gains (Losses)

     27        (102,437     (3,009     (105,446     (151,788     46,341  

Net Gains (Losses) related to Stocks

     28        (72,385     (2,932     (75,317     (118,537     43,220  

Expenses related to Portfolio Problems

     29        (21,981     (0     (21,981     (13,317     (8,664

Gains on Reversal of Reserves for Possible Losses on Loans, and others

     30        3,121       247       3,368       (3,597     6,965  

Other

     31        (11,191     (323     (11,515     (16,335     4,820  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ordinary Profits

     32        132,527       15,819       148,346       (168,763     317,110  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Extraordinary Gains (Losses)

     33        51,998       5,862       57,860       62,675       (4,815

Net Gains (Losses) on Disposition of Fixed Assets

     34        1,229       (375     853       1,659       (805

Losses on Impairment of Fixed Assets

     35        (761     —         (761     3,248       (4,010

Accumulation (Amortization) of Unrecognized Prior Service Cost

     36        45,822       6,569       52,391       52,391       —    

Gains on Cancellation of Employee Retirement Benefit Trust

     37        7,895       —         7,895       7,895       —    

Losses on Transfer to Defined Contribution Pension Plan

     38        (2,187     (331     (2,519     (2,519     —    

Income before Income Taxes

     39        184,525       21,681       206,206       (106,087     312,294  

Income Taxes—Current

     40        (46,504     (2,181     (48,685     20,387       (69,073

—Deferred

     41        (28,298     (3,796     (32,094     (23,570     (8,523
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Income

     42        109,722       15,704       125,426       (109,271     234,697  
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(1) Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) for MHTB excludes the amounts of “Credit Costs for Trust Accounts” [6].

(2) Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) from core business areas[22]

      =Net Business Profits(before Reversal of (Provision for) General Reserve for Losses on Loans)[21]-Net Gains (Losses) related to Bonds[26]

 

 

 

Credit-related Costs

     43        (79,726     247       (79,479     (64,440     (15,039

Credit-related Costs [43] = Expenses related to Portfolio Problems [29] + Reversal of (Provision for) General Reserve for Losses on Loans [24] + Gains on Reversal of Reserves for Possible Losses on Loans, and others [30] + Credit Costs for Trust Accounts [6]

 

Reference: Breakdown of Credit-related Costs

             

Credit Costs for Trust Accounts

     44          —         —         —         —    

Reversal of (Provision for) General Reserve for Losses on Loans

     45        (60,866     219       (60,647     (47,306     (13,341

Losses on Write-offs of Loans

     46        (3,958     0       (3,958     647       (4,605

Reversal of (Provision for) Specific Reserve for Possible Losses on Loans

     47        (15,438     27       (15,411     (18,866     3,455  

Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries

     48        —         —         —         (4     4  

Reversal of (Provision for) Reserve for Contingencies

     49        1,120       —         1,120       1,319       (198

Other (including Losses on Sales of Loans)

     50        (583     —         (583     (229     (353

Total

     51        (79,726     247       (79,479     (64,440     (15,039

 

2-2


Mizuho Financial Group, Inc.

 

Mizuho Bank

Non-Consolidated

 

                                                           
         (Millions of yen)  
         First Half of
Fiscal  2020
    First Half of  
               Change     Fiscal 2019  

Gross Profits

   1     694,993       25,825       669,168  

Domestic Gross Profits

   2     334,010       (17,218     351,229  

Net Interest Income

   3     198,312       (15,299     213,612  

Net Fee and Commission Income

   4     130,100       18,331       111,768  

Net Trading Income

   5     9,966       11,857       (1,890

Net Other Operating Income

   6     (4,369     (32,107     27,738  

International Gross Profits

   7     360,983       43,043       317,939  

Net Interest Income

   8     179,471       67,060       112,411  

Net Fee and Commission Income

   9     71,830       5,327       66,502  

Net Trading Income

   10     63,299       (5,835     69,135  

Net Other Operating Income

   11     46,381       (23,507     69,889  

General and Administrative Expenses (excluding Non-Recurring Losses)

   12     (399,162 )      9,407       (408,569

Expense Ratio

   13     57.4 %       (3.6 %)       61.0 %  

Personnel Expenses

   14     (154,180     7,537       (161,718

Non-Personnel Expenses

   15     (220,976     630       (221,607

Premium for Deposit Insurance

   16     (16,083     (514     (15,569

Miscellaneous Taxes

   17     (24,005     1,238       (25,243
    

 

 

   

 

 

   

 

 

 

Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans)

   18     295,831       35,232       260,598  
    

 

 

   

 

 

   

 

 

 

Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) from core business areas *

   19     257,750       82,550       175,200  
    

 

 

   

 

 

   

 

 

 

Excluding Net Gains (Losses) from redemption of Investment Trusts

   20     256,064       82,772       173,292  
    

 

 

   

 

 

   

 

 

 

Reversal of (Provision for) General Reserve for Losses on Loans

   21     (60,866     (47,619     (13,247
    

 

 

   

 

 

   

 

 

 

Net Business Profits

   22     234,964       (12,387     247,351  
    

 

 

   

 

 

   

 

 

 

Net Gains (Losses) related to Bonds

   23     38,080       (47,318     85,398  
    

 

 

   

 

 

   

 

 

 

Net Non-Recurring Gains (Losses)

   24     (102,437 )      (150,492     48,055  

Net Gains (Losses) related to Stocks

   25     (72,385     (116,012     43,626  

Expenses related to Portfolio Problems

   26     (21,981     (13,272     (8,709

Gains on Reversal of Reserves for Possible Losses on Loans, and others

   27     3,121       (3,819     6,941  

Other

   28     (11,191     (17,388     6,196  
    

 

 

   

 

 

   

 

 

 

Ordinary Profits

   29     132,527       (162,880     295,407  
    

 

 

   

 

 

   

 

 

 

Net Extraordinary Gains (Losses)

   30     51,998       57,300       (5,301

Net Gains (Losses) on Disposition of Fixed Assets

   31     1,229       2,862       (1,632

Losses on Impairment of Fixed Assets

   32     (761     2,907       (3,669

Accumulation (Amortization) of Unrecognized Prior Service Cost

   33     45,822       45,822       —    

Gains on Cancellation of Employee Retirement Benefit Trust

   34     7,895       7,895       —    

Losses on Transfer to Defined Contribution Pension Plan

   35     (2,187     (2,187     —    

Income before Income Taxes

   36     184,525       (105,580     290,105  

Income Taxes—Current

   37     (46,504     19,460       (65,965

—Deferred

   38     (28,298     (23,293     (5,004
    

 

 

   

 

 

   

 

 

 

Net Income

   39     109,722       (109,413     219,135  
    

 

 

   

 

 

   

 

 

 

* Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) from core business areas[19]

      =Net Business Profits(before Reversal of (Provision for) General Reserve for Losses on Loans)[18]-Net Gains (Losses) related to Bonds[23]

 

 

Credit-related Costs

   40     (79,726 )      (64,711 )      (15,014

Credit-related Costs [40] =  Expenses related to Portfolio Problems [26] + Reversal of (Provision for) General Reserve for Losses on Loans [21] + Gains on Reversal of Reserves for Possible Losses on Loans, and others [27]

 

Reference: Breakdown of Credit-related Costs

        

Reversal of (Provision for) General Reserve for Losses on Loans

   41     (60,866     (47,619     (13,247

Losses on Write-offs of Loans

   42     (3,958     671       (4,630

Reversal of (Provision for) Specific Reserve for Possible Losses on Loans

   43     (15,438     (18,848     3,410  

Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries

   44     —         (4     4  

Reversal of (Provision for) Reserve for Contingencies

   45     1,120       1,319       (198

Other (including Losses on Sales of Loans)

   46     (583     (229     (353

Total

   47     (79,726 )      (64,711     (15,014

 

2-3


Mizuho Financial Group, Inc.

 

                                                           

Mizuho Trust & Banking

 

Non-Consolidated

 

 

 

         (Millions of yen)  
         First Half of
Fiscal  2020
    First Half of  
               Change     Fiscal 2019  

Gross Profits

   1       59,926       (4,908     64,835  

Domestic Gross Profits

   2     51,978       (9,469     61,448  

Net Interest Income

   3     10,153       (1,511     11,665  

Fiduciary Income

   4     27,277       (641     27,919  

Trust Fees for Jointly Operated Designated Money Trust

   5     2,024       (151     2,175  

Credit Costs for Trust Accounts (1)

   6     —         —         —    

Net Fee and Commission Income

   7     12,623       810       11,813  

Net Trading Income (2)

   8     1,172       (6,524     7,696  

Net Other Operating Income

   9     751       (1,602     2,353  

International Gross Profits

   10     7,947       4,560       3,387  

Net Interest Income

   11     3,313       1,516       1,797  

Net Fee and Commission Income

   12     (352     (80     (271

Net Trading Income (2)

   13     (683          6,517       (7,201

Net Other Operating Income

   14     5,670       (3,392     9,063  

General and Administrative Expenses (excluding Non-Recurring Losses)

   15     (41,098     226       (41,324

Expense Ratio

   16     68.5 %       4.8 %       63.7 %  

Personnel Expenses

   17     (19,590     246       (19,836

Non-Personnel Expenses

   18     (19,848     31       (19,880

Premium for Deposit Insurance

   19     (636     10       (647

Miscellaneous Taxes

   20     (1,659     (51     (1,607
    

 

 

   

 

 

   

 

 

 

Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans)

   21     18,828       (4,682     23,510  
    

 

 

   

 

 

   

 

 

 

Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) from core business areas (3)

   22     12,425       178       12,247  
    

 

 

   

 

 

   

 

 

 

Excluding Net Gains (Losses) from redemption of Investment Trusts

   23     11,923       (219     12,143  
    

 

 

   

 

 

   

 

 

 

Reversal of (Provision for) General Reserve for Losses on Loans

   24     —         94       (94
    

 

 

   

 

 

   

 

 

 

Net Business Profits

   25     18,828       (4,587     23,416  
    

 

 

   

 

 

   

 

 

 

Net Gains (Losses) related to Bonds

   26     6,402       (4,860     11,263  
    

 

 

   

 

 

   

 

 

 

Net Non-Recurring Gains (Losses)

   27     (3,009     (1,295     (1,713

Net Gains (Losses) related to Stocks

   28     (2,932     (2,525     (406

Expenses related to Portfolio Problems

   29     (0     (45     45  

Gains on Reversal of Reserves for Possible Losses on Loans, and others

   30     247       222       24  

Other

   31     (323     1,052       (1,376
    

 

 

   

 

 

   

 

 

 

Ordinary Profits

   32     15,819       (5,883     21,702  
    

 

 

   

 

 

   

 

 

 

Net Extraordinary Gains (Losses)

   33     5,862       5,375       486  

Net Gains (Losses) on Disposition of Fixed Assets

   34     (375     (1,203     827  

Losses on Impairment of Fixed Assets

   35     —         341       (341

Accumulation (Amortization) of Unrecognized Prior Service Cost

   36     6,569       6,569       —    

Losses on Transfer to Defined Contribution Pension Plan

   37     (331     (331     —    

Income before Income Taxes

   38     21,681       (507     22,188  

Income Taxes—Current

   39     (2,181     926       (3,107

—Deferred

   40     (3,796     (277     (3,519
    

 

 

   

 

 

   

 

 

 

Net Income

   41     15,704       142       15,562  
    

 

 

   

 

 

   

 

 

 

(1) Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) excludes the amounts of “Credit Costs for Trust Accounts” [6].

(2) Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) from core business areas[22]

      =Net Business Profits(before Reversal of (Provision for) General Reserve for Losses on Loans)[21]-Net Gains (Losses) related to Bonds[26]

 

 

 

Credit-related Costs

   42     247       271       (24

Credit-related Costs [42] =  Expenses related to Portfolio Problems [29] + Reversal of (Provision for) General Reserve for Losses on Loans [24] + Gains on Reversal of Reserves for Possible Losses on Loans, and others [30] + Credit Costs for Trust Accounts [6]

 

Reference: Breakdown of Credit-related Costs

        

Credit Costs for Trust Accounts

   43     —         —         —    

Reversal of (Provision for) General Reserve for Losses on Loans

   44     219       313       (94

Losses on Write-offs of Loans

   45     0       (24     24  

Reversal of (Provision for) Specific Reserve for Possible Losses on Loans

   46     27       (17     45  

Reversal of (Provision for) Reserve for Possible Losses on Loans to Restructuring Countries

   47     —         —         —    

Reversal of (Provision for) Reserve for Contingencies

   48     —         —         —    

Other (including Losses on Sales of Loans)

   49     —         —         —    

Total

   50     247       271       (24

 

2-4


Mizuho Financial Group, Inc.

 

                                                                          

2. Interest Margins (Domestic Operations)

 

Non-Consolidated

 

            
               (%)  
               First Half of
Fiscal 2020
    First Half of
Fiscal 2019
 
Mizuho Bank                    Change  

Return on Interest-Earning Assets

      1      0.37       (0.06     0.44  

Return on Loans and Bills Discounted (1)

      2      0.71       (0.05     0.77  

Return on Securities

      3      0.21       (0.23     0.45  

Cost of Funding (including Expenses)

      4      0.56       (0.05     0.62  

Cost of Deposits (including Expenses)

      5      0.56       (0.06     0.62  

Cost of Deposits (2)

      6      0.00       (0.00     0.00  

Cost of Other External Liabilities

      7      0.52       (0.07     0.59  
        

 

 

   

 

 

   

 

 

 

Net Interest Margin

   (1)-(4)    8      (0.18     0.00       (0.18

Loan and Deposit Rate Margin (including Expenses)

   (2)-(5)    9      0.15       0.00       0.14  

Loan and Deposit Rate Margin

   (2)-(6)    10      0.71       (0.05     0.76  
        

 

 

   

 

 

   

 

 

 

 

(1)  Return on Loans and Bills Discounted excludes loans to financial institutions (including MHFG).

(2)  Deposits include Negotiable Certificates of Deposit (“NCDs”).

 

 

Reference: After excluding loans to the Japanese government and others

 

   

   

 

Return on Loans and Bills Discounted

      11      0.73       (0.05     0.79  

Loan and Deposit Rate Margin (including Expenses)

   (11)-(5)    12      0.17       0.00       0.17  

Loan and Deposit Rate Margin

   (11)-(6)    13      0.73       (0.05     0.79  
               (%)  

Mizuho Trust & Banking

             First Half of
Fiscal 2020
    First Half of
Fiscal 2019
 
                   Change  

Return on Interest-Earning Assets

      14      0.45       (0.03     0.49  

Return on Loans and Bills Discounted (1)

      15      0.57       (0.02     0.59  

Return on Securities

      16      1.12       (0.29     1.41  

Cost of Funding

      17      0.10       0.01       0.09  

Cost of Deposits (2)

      18      0.01       0.00       0.01  
        

 

 

   

 

 

   

 

 

 

Net Interest Margin

   (14)-(17)    19      0.35       (0.04     0.40  

Loan and Deposit Rate Margin

   (15)-(18)    20      0.56       (0.01     0.58  
        

 

 

   

 

 

   

 

 

 

 

(1)  Return on Loans and Bills Discounted excludes loans to financial institutions (including MHFG).

(2)  Deposits include NCDs.

 

 

Reference: After excluding loans to the Japanese government and others

 

   

   

 

Return on Loans and Bills Discounted

      21      0.60       (0.01     0.61  

Loan and Deposit Rate Margin

   (21)-(18)    22      0.59       (0.01     0.60  

 

Reference

             (%)  
               First Half of
Fiscal 2020
    First Half of
Fiscal 2019
 
Aggregate Figures for the 2 Banks                    Change  

Return on Loans and Bills Discounted (1)

      23      0.70       (0.05     0.76  

Cost of Deposits (2)

      24      0.00       (0.00     0.00  
        

 

 

   

 

 

   

 

 

 

Loan and Deposit Rate Margin

   (23)-(24)    25      0.70       (0.05     0.75  
        

 

 

   

 

 

   

 

 

 

 

(1)  Return on Loans and Bills Discounted excludes loans to financial institutions (including MHFG).

(2)  Deposits include NCDs.

 

 

Reference: After excluding loans to the Japanese government and others

 

   

   

 

Return on Loans and Bills Discounted

      26      0.73       (0.05     0.78  

Loan and Deposit Rate Margin

   (26)-(24)    27      0.72       (0.05     0.78  

 

2-5


Mizuho Financial Group, Inc.

 

3. Use and Source of Funds

Non-Consolidated

Mizuho Bank

 

     (Millions of yen, %)  
     First Half of Fiscal 2020               
                   Change     First Half of Fiscal 2019  
     Average Balance      Rate      Average Balance     Rate     Average Balance      Rate  

Total

               

Use of Funds

     177,251,209        0.66        23,674,077       (0.45     153,577,132        1.12  

Loans and Bills Discounted

     84,756,413        1.01        8,273,826       (0.50     76,482,587        1.52  

Securities

     36,991,118        0.60        9,004,889       (0.35     27,986,229        0.96  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Source of Funds

     175,882,935        0.24        22,715,359       (0.46     153,167,575        0.70  

Deposits

     131,784,993        0.11        12,819,635       (0.29     118,965,358        0.41  

NCDs

     13,547,661        0.24        (92,575     (0.74     13,640,237        0.99  

Domestic Operations

               

Use of Funds

     118,302,201        0.37        11,123,822       (0.06     107,178,379        0.44  

Loans and Bills Discounted

     53,806,290        0.70        5,170,930       (0.05     48,635,360        0.76  

Securities

     22,214,688        0.21        4,302,242       (0.23     17,912,446        0.45  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Source of Funds

     117,087,466        0.04        10,409,632       0.00       106,677,834        0.04  

Deposits

     101,431,176        0.00        8,460,797       (0.00     92,970,378        0.00  

NCDs

     7,900,656        0.00        726,418       (0.00     7,174,237        0.00  

International Operations

               

Use of Funds

     60,129,817        1.23        10,668,504       (1.31     49,461,312        2.54  

Loans and Bills Discounted

     30,950,123        1.55        3,102,896       (1.29     27,847,227        2.84  

Securities

     14,776,429        1.18        4,702,646       (0.67     10,073,782        1.85  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Source of Funds

     59,976,279        0.63        10,423,978       (1.44     49,552,301        2.08  

Deposits

     30,353,817        0.50        4,358,837       (1.36     25,994,980        1.87  

NCDs

     5,647,005        0.59        (818,993     (1.50     6,465,999        2.09  

 

2-6


Mizuho Financial Group, Inc.

 

 

Mizuho Trust & Banking (Banking Account)

 

 

     (Millions of yen, %)  
     First Half of Fiscal 2020               
                   Change     First Half of Fiscal 2019  
     Average Balance      Rate      Average Balance     Rate     Average Balance      Rate  

Total

               

Use of Funds

     6,298,815        0.57        (50,051     (0.05     6,348,866        0.63  

Loans and Bills Discounted

     3,504,375        0.62        124,626       (0.11     3,379,749        0.74  

Securities

     875,944        1.40        (4,788     (0.07     880,732        1.47  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Source of Funds

     6,394,023        0.14        (401,124     (0.05     6,795,148        0.19  

Deposits

     3,115,718        0.01        (363,241     (0.00     3,478,959        0.02  

NCDs

     563,051        0.00        114,741       (0.00     448,309        0.01  

Domestic Operations

               

Use of Funds

     5,734,692        0.45        (159,767     (0.03     5,894,459        0.49  

Loans and Bills Discounted

     3,364,372        0.57        185,141       (0.02     3,179,231        0.59  

Securities

     431,388        1.12        (153,633     (0.29     585,021        1.41  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Source of Funds

     5,796,911        0.10        (530,388     0.01       6,327,299        0.09  

Deposits

     3,112,108        0.01        (358,923     (0.00     3,471,032        0.01  

NCDs

     563,051        0.00        114,741       (0.00     448,309        0.01  

International Operations

               

Use of Funds

     611,073        1.65        96,500       (0.57     514,572        2.22  

Loans and Bills Discounted

     140,003        1.88        (60,514     (1.20     200,517        3.09  

Securities

     444,556        1.67        148,845       0.06       295,711        1.60  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Source of Funds

     644,062        0.54        116,048       (0.94     528,013        1.48  

Deposits

     3,609        0.13        (4,317     (1.44     7,927        1.57  

NCDs

     —          —          —         —         —          —    

 

2-7


Mizuho Financial Group, Inc.

 

4. Net Gains/Losses on Securities

Consolidated

 

     (Millions of yen)  
     First Half of
Fiscal 2020
    First Half of
Fiscal 2019
 
           Change  

Net Gains (Losses) related to Bonds

     45,279       (51,493     96,773  

Gains on Sales and Others

     77,301       (66,062     143,364  

Losses on Sales and Others

     (29,912     13,400       (43,312

Impairment (Devaluation)

     (3,048     (2,293     (754

Reversal of (Provision for) Reserve for Possible Losses on Investments

     (0     (0     —    

Gains (Losses) on Derivatives other than for Trading

     938       3,462       (2,523
     First Half of
Fiscal 2020
    First Half of
Fiscal 2019
 
           Change  

Net Gains (Losses) related to Stocks

     (69,490     (116,909     47,418  

Gains on Sales

     44,129       (42,568     86,698  

Losses on Sales

     (24,008     (3,004     (21,004

Impairment (Devaluation)

     (62,682     (52,652     (10,030

Reversal of (Provision for) Reserve for Possible Losses on Investments

     —         —         —    

Gains (Losses) on Derivatives other than for Trading

     (26,929     (18,682     (8,246

Non-Consolidated

 

Aggregate Figures for the 2 Banks

 

 

 

     (Millions of yen)  
     First Half of
Fiscal 2020
    First Half of
Fiscal 2019
 
         Change  

Net Gains (Losses) related to Bonds

     44,483       (52,178     96,661  

Gains on Sales and Others

     77,284       (66,355     143,639  

Losses on Sales and Others

     (30,731     12,971       (43,702

Impairment (Devaluation)

     (3,017     (2,266     (751

Reversal of (Provision for) Reserve for Possible Losses on Investments

     —         —         —    

Gains (Losses) on Derivatives other than for Trading

     947       3,471       (2,523
     First Half of
Fiscal 2020
    First Half of
Fiscal 2019
 
           Change  

Net Gains (Losses) related to Stocks

     (75,317     (118,537     43,220  

Gains on Sales

     38,333       (41,140     79,474  

Losses on Sales

     (20,814     (379     (20,435

Impairment (Devaluation)

     (65,818     (58,810     (7,008

Reversal of (Provision for) Reserve for Possible Losses on Investments

     (89     475       (565

Gains (Losses) on Derivatives other than for Trading

     (26,929     (18,682     (8,246

 

2-8


Mizuho Financial Group, Inc.

 

Mizuho Bank

 

 

     (Millions of yen)  
     First Half of
Fiscal 2020
    First Half of
Fiscal 2019
 
         Change  

Net Gains (Losses) related to Bonds

     38,080       (47,318     85,398  

Gains on Sales and Others

     69,665       (58,914     128,580  

Losses on Sales and Others

     (29,689     11,742       (41,431

Impairment (Devaluation)

     (3,017     (2,265     (751

Reversal of (Provision for) Reserve for Possible Losses on Investments

     —         —         —    

Gains (Losses) on Derivatives other than for Trading

     1,121       2,119       (998
     First Half of
Fiscal 2020
    First Half of
Fiscal 2019
 
           Change  

Net Gains (Losses) related to Stocks

     (72,385     (116,012     43,626  

Gains on Sales

     32,361       (45,153     77,514  

Losses on Sales

     (18,281     810       (19,091

Impairment (Devaluation)

     (63,885     (57,188     (6,697

Reversal of (Provision for) Reserve for Possible Losses on Investments

     (89     475       (565

Gains (Losses) on Derivatives other than for Trading

     (22,490     (14,956     (7,533

Mizuho Trust & Banking

 

 

     (Millions of yen)  
     First Half of
Fiscal 2020
    First Half of
Fiscal 2019
 
         Change  

Net Gains (Losses) related to Bonds

       6,402       (4,860     11,263  

Gains on Sales and Others

     7,618       (7,441     15,059  

Losses on Sales and Others

     (1,041       1,228       (2,270

Impairment (Devaluation)

     (0     (0     —    

Reversal of (Provision for) Reserve for Possible Losses on Investments

     —         —         —    

Gains (Losses) on Derivatives other than for Trading

     (173     1,352       (1,525
     First Half of
Fiscal 2020
    First Half of
Fiscal 2019
 
           Change  

Net Gains (Losses) related to Stocks

     (2,932     (2,525     (406

Gains on Sales

     5,972       4,012       1,959  

Losses on Sales

     (2,532     (1,189     (1,343

Impairment (Devaluation)

     (1,933     (1,622     (311

Reversal of (Provision for) Reserve for Possible Losses on Investments

     —         —         —    

Gains (Losses) on Derivatives other than for Trading

     (4,438     (3,726     (712

 

2-9


Mizuho Financial Group, Inc.

 

5. Unrealized Gains/Losses on Securities

Stocks and others without a quoted market price and Investments in Partnerships are excluded.

Consolidated

(1) Other Securities

 

     (Millions of yen)  
  

 

 

 
     As of September 30, 2020      As of March 31, 2020  
  

 

 

    

 

 

 
     Book Value      Unrealized Gains/Losses      Book Value      Unrealized Gains/Losses  
  

 

 

    

 

 

 
     (= Fair Value)            Gains      Losses      (= Fair Value)            Gains      Losses  
  

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

 

Other Securities

     41,720,521        1,461,541       1,680,867        219,325        33,337,628        1,171,146       1,543,609        372,462  

Japanese Stocks

     2,581,799        1,370,207       1,428,868        58,660        2,338,429        1,066,360       1,167,903        101,543  

Japanese Bonds

     23,107,771        (50,561     28,270        78,831        15,702,512        (54,100     30,037        84,137  

Japanese Government Bonds

     19,920,362        (44,661     2,607        47,268        12,601,934        (44,021     6,540        50,562  

Other

     16,030,951        141,895       223,728        81,833        15,296,686        158,886       345,668        186,781  

Foreign Bonds

     13,299,464        171,500       184,516        13,016        12,702,213        200,954       246,097        45,142  

 

•  In addition to “Securities” on the consolidated balance sheets, NCDs in “Cash and Due from Banks,” certain items in “Other Debt Purchased” and certain items in “Other Assets” are also included.

•  As of September 30, 2020, fair value of securities is determined at the quoted market price if available, or other reasonable value at the consolidated balance sheet date.

   As of March 31, 2020, fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price over the month preceding the consolidated balance sheet date.

   Fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidated balance sheet date.

•  The book values of Other Securities which have readily determinable fair value are stated at fair value, so Unrealized Gains/Losses indicate the difference between book values on the consolidated balance sheets and the acquisition costs.

•  Unrealized Gains/Losses include ¥(1,301) million and ¥(5,191) million, which were recognized in the statement of income for September 30, 2020 and March 31, 2020, respectively, by applying the fair-value hedge method. As a result, the base amounts to be recorded directly to Net Assets after tax and consolidation adjustments as of September 30, 2020 and March 31, 2020 are ¥1,462,843 million and ¥1,176,337 million, respectively.

•  Unrealized Gains (Losses) on Other Securities, net of Taxes (recorded directly to Net Assets after tax and consolidation adjustments, excluding the amount recognized in the statement of income by applying the fair-value hedge method, including translation differences and others regarding stocks and others without a quoted market price and Investments in Partnerships) as of September 30, 2020 and March 31, 2020 are ¥1,038,781 million and ¥823,085 million, respectively.

 

(2) Bonds Held to Maturity

 

   

   

    

    

   

   

   

 

     (Millions of yen)  
  

 

 

 
     As of September 30, 2020      As of March 31, 2020  
  

 

 

    

 

 

 
            Unrealized Gains/Losses             Unrealized Gains/Losses  
  

 

 

    

 

 

 
     Book Value            Gains      Losses      Book Value            Gains      Losses  
  

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

 

Bonds Held to Maturity

     788,395        23,753       23,753        —          860,233        15,096       15,467        370  

 

Non-Consolidated

 

(1) Other Securities

 

Aggregate Figures for the 2 Banks

 

 

 

     (Millions of yen)  
  

 

 

 
     As of September 30, 2020      As of March 31, 2020  
  

 

 

    

 

 

 
     Book Value      Unrealized Gains/Losses      Book Value      Unrealized Gains/Losses  
  

 

 

    

 

 

 
     (= Fair Value)            Gains      Losses      (= Fair Value)            Gains      Losses  
  

 

 

      

 

 

    

 

 

    

 

 

      

 

 

    

 

 

 

Other Securities

     41,138,802        1,391,024       1,608,970        217,946        32,728,555        1,097,064       1,471,736        374,672  

Japanese Stocks

     2,495,126        1,301,296       1,359,671        58,374        2,253,467        994,275       1,098,051        103,776  

Japanese Bonds

     23,084,331        (50,569     28,262        78,831        15,675,573        (54,111     30,026        84,137  

Japanese Government Bonds

     19,906,166        (44,667     2,601        47,268        12,585,075        (44,028     6,533        50,562  

Other

     15,559,344        140,297       221,037        80,740        14,799,514        156,900       343,658        186,758  

Foreign Bonds

     12,896,378        170,789       182,712        11,923        12,360,799        199,672       244,795        45,122  

Mizuho Bank

                     

Other Securities

     40,353,028        1,311,844       1,518,713        206,869        31,816,754        1,033,585       1,393,577        359,992  

Japanese Stocks

     2,349,223        1,229,768       1,279,484        49,716        2,118,532        937,153       1,033,813        96,660  

Japanese Bonds

     22,884,302        (51,238     27,421        78,660        15,413,226        (55,616     28,480        84,097  

Japanese Government Bonds

     19,786,300        (44,504     2,598        47,102        12,406,892        (44,931     5,631        50,562  

Other

     15,119,503        133,314       211,807        78,492        14,284,996        152,048       331,282        179,234  

Foreign Bonds

     12,625,682        163,640       174,841        11,201        11,916,915        188,388       233,272        44,883  

Mizuho Trust & Banking

                     

Other Securities

     785,774        79,179       90,256        11,077        911,800        63,479       78,159        14,680  

Japanese Stocks

     145,903        71,527       80,186        8,658        134,934        57,122       64,237        7,115  

Japanese Bonds

     200,028        669       840        171        262,347        1,505       1,545        40  

Japanese Government Bonds

     119,866        (162     2        165        178,183        902       902        —    

Other

     439,841        6,982       9,229        2,247        514,518        4,851       12,376        7,524  

Foreign Bonds

     270,696        7,148       7,871        722        443,884        11,283       11,522        238  

 

In addition to “Securities” on the balance sheets, NCDs in “Cash and Due from Banks” and certain items in “Other Debt Purchased” are also included.

As of September 30, 2020, fair value of securities is determined at the quoted market price if available, or other reasonable value at the consolidated balance sheet date.

 

As of March 31, 2020, fair value of Japanese stocks with a quoted market price is determined based on the average quoted market price over the month preceding the consolidated balance sheet date.

 

Fair value of securities other than Japanese stocks is determined at the quoted market price if available, or other reasonable value at the consolidated balance sheet date.

The book values of Other Securities which have readily determinable fair value are stated at fair value, so Unrealized Gains/Losses indicate the difference between book values on the balance sheets and the acquisition costs.

Unrealized Gains/Losses include ¥(1,301) million and ¥(5,191) million, which were recognized in the statement of income (aggregate figures for the 2 banks) for September 30, 2020 and March 31, 2020, respectively, by applying the fair-value hedge method. As a result, the base amounts to be recorded directly to Net Assets after tax adjustment (aggregate figures for the 2 banks) as of September 30, 2020 and March 31, 2020 are ¥1,392,325 million and ¥1,102,255 million, respectively.

Unrealized Gains (Losses) on Other Securities, net of Taxes (recorded directly to Net Assets after tax adjustment, excluding the amount recognized in the statement of income by applying the fair-value hedge method including translation differences and others regarding stocks and others without a quoted market price and Investments in Partnerships) as of September 30, 2020 and March 31, 2020 are as follows:

 

     (Millions of yen)  
     As of September 30, 2020      As of March 31, 2020  

Aggregate Figures

     1,000,725        784,915  

Mizuho Bank

     940,044        734,953  

Mizuho Trust & Banking

     60,681        49,961  

 

2-10


Mizuho Financial Group, Inc.

 

(2) Bonds Held to Maturity

Aggregate Figures for the 2 Banks

 

     (Millions of yen)  
     As of September 30, 2020      As of March 31, 2020  
     Book Value      Unrealized Gains/Losses      Book Value      Unrealized Gains/Losses  
            Gains      Losses             Gains      Losses  

Aggregate Figures

     788,395        23,753        23,753        —          860,233        15,096        15,467        370  

Mizuho Bank

     788,395        23,753        23,753        —          860,233        15,096        15,467        370  

Mizuho Trust & Banking

     —          —          —          —          —          —          —          —    
(3) Investment in Subsidiaries and Affiliates

 

Aggregate Figures for the 2 Banks

 

     (Millions of yen)  
     As of September 30, 2020      As of March 31, 2020  
     Book Value      Unrealized Gains/Losses      Book Value      Unrealized Gains/Losses  
            Gains      Losses             Gains      Losses  

Aggregate Figures

     135,771        206,840        207,320        479        135,771        151,877        153,740        1,862  

Mizuho Bank

     135,771        206,840        207,320        479        135,771        151,877        153,740        1,862  

Mizuho Trust & Banking

     —          —          —          —          —          —          —          —    

Reference

Unrealized Gains/Losses on Other Securities

(the base amount to be recorded directly to Net Assets after tax and other necessary adjustments)

For certain Other Securities, Unrealized Gains/Losses were recognized in the statement of income by applying the fair-value hedge method. Unrealized Gains/Losses on Other Securities after excluding such Income/Loss (the “base amount”) are recorded directly to Net Assets after tax and other necessary adjustments.

The base amounts are as follows:

Consolidated

 

     (Millions of yen)  
     As of September 30, 2020     As of
March 31, 2020
 
     Unrealized Gains/Losses     Unrealized
Gains/Losses
 
           Change  

Other Securities

     1,462,843       286,506       1,176,337  

Japanese Stocks

     1,371,509       299,958       1,071,551  

Japanese Bonds

     (50,561     3,539       (54,100

Japanese Government Bonds

     (44,661     (639     (44,021

Other

     141,895       (16,991     158,886  

Foreign Bonds

     171,500       (29,453     200,954  

 

Non-Consolidated

 

Aggregate Figures for the 2 Banks

 

      
     (Millions of yen)  
     As of September 30, 2020     As of
March 31, 2020
 
     Unrealized Gains/Losses     Unrealized
Gains/Losses
 
           Change  

Other Securities

     1,392,325       290,070       1,102,255  

Japanese Stocks

     1,302,597       303,131       999,466  

Japanese Bonds

     (50,569     3,541       (54,111

Japanese Government Bonds

     (44,667     (638     (44,028

Other

     140,297       (16,602     156,900  

Foreign Bonds

     170,788       (28,883     199,672  

 

2-11


Mizuho Financial Group, Inc.

 

6. Projected Redemption Amounts for Securities

⬛ The redemption schedule by term for Bonds Held to Maturity and Other Securities with maturities is as follows:

Non-Consolidated

Aggregate Figures for the 2 Banks

 

    (Billions of yen)  
    Maturity as of September 30, 2020     Change     Maturity as of March 31, 2020  
    Within
1 year
    1 - 5
years
    5 - 10
years
    Over
10 years
    Within
1 year
    1 - 5
years
    5 - 10
years
    Over
10 years
    Within
1 year
    1 - 5
years
    5 - 10
years
    Over
10 years
 

Japanese Bonds

    14,955.9       5,614.8       2,143.5       803.6       8,707.3       (1,273.9     (133.9     177.4       6,248.6         6,888.8       2,277.4       626.2  

Japanese Government Bonds

    14,563.4       4,076.7       1,505.6       195.0       8,712.0       (1,312.8     (156.5     150.0       5,851.4       5,389.5       1,662.1       45.0  

Japanese Local Government Bonds

    30.5       209.0       150.1       16.9       19.0       37.5       65.5       12.5       11.5       171.4       84.6       4.4  

Japanese Corporate Bonds

    362.0       1,329.1       487.7       591.7       (23.7     1.2       (42.9     14.9       385.7       1,327.8       530.7       576.8  

Other

    3,026.2       2,710.6       2,991.3       5,351.7       (203.0     (311.4     414.7       618.9       3,229.3       3,022.1       2,576.5         4,732.7  
Mizuho Bank                        

Japanese Bonds

    14,844.5         5,552.0       2,128.3       793.6       8,658.2       (1,166.0     (125.4     167.4       6,186.3       6,718.1       2,253.7       626.2  

Japanese Government Bonds

    14,453.4       4,076.7       1,505.6       185.0       8,655.1       (1,192.8     (156.5     140.0       5,798.3       5,269.5       1,662.1       45.0  

Japanese Local Government Bonds

    29.9       208.8       150.1       16.9       19.1       37.6       65.5       12.5       10.7       171.1       84.6       4.4  

Japanese Corporate Bonds

    361.2       1,266.5       472.5       591.7       (15.9     (10.9     (34.5     14.9       377.2       1,277.4       507.0       576.8  

Other

    2,985.7       2,610.9       2,828.3         5,255.0       (224.8     (274.6     426.9       618.9       3,210.6       2,885.5       2,401.3       4,636.1  
Mizuho Trust & Banking                        

Japanese Bonds

    111.3       62.8       15.1       10.0       49.0       (107.8     (8.4     10.0       62.3       170.7       23.6       —    

Japanese Government Bonds

    110.0       —         —         10.0       56.9       (120.0     —         10.0       53.1       120.0       —         —    

Japanese Local Government Bonds

    0.5       0.1       —         —         (0.1     (0.1             —                 —         0.7       0.2       —         —    

Japanese Corporate Bonds

    0.7       62.6       15.1       —         (7.7     12.2       (8.4     —         8.4       50.4       23.6       —    

Other

    40.5       99.7       162.9       96.6       21.8       (36.8     (12.2     (0.0     18.7       136.6       175.2       96.6  

 

2-12


Mizuho Financial Group, Inc.

 

7. Overview of Derivative Transactions Qualifying for Hedge Accounting

Non-Consolidated

Notional Amounts of Interest Rate Swaps (qualifying for hedge accounting (deferred method)) by Remaining Contractual Term

Aggregate Figures for the 2 Banks

 

    (Billions of yen)  
    As of September 30, 2020     Change     As of March 31, 2020  
    Within
1 year
    1 - 5
years
    Over
5 years
    Total     Within
1 year
    1 - 5
years
    Over
5 years
    Total     Within
1 year
    1 - 5
years
    Over
5 years
    Total  

Receive Fixed / Pay Float

      3,435.8       8,889.2       5,917.6       18,242.7       1,626.0       (1,594.4        59.3        91.0       1,809.7       10,483.7       5,858.2       18,151.7  

Receive Float / Pay Fixed

    431.1       1,861.9       3,072.3       5,365.4       11.0       (722.8     (63.4     (775.2     420.1       2,584.7       3,135.7       6,140.6  

Receive Float / Pay Float

    —         —         —         —         —         —         —         —         —         —         —         —    

Receive Fixed / Pay Fixed

    —         —         —         —         —         —         —         —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    3,866.9       10,751.2       8,989.9       23,608.1       1,637.1       (2,317.3     (4.0     (684.2     2,229.8       13,068.5       8,994.0       24,292.3  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Mizuho Bank

 

 

Receive Fixed / Pay Float

    3,435.8       8,889.2       5,892.6       18,217.7       1,626.0       (1,594.4     34.3       66.0       1,809.7       10,483.7       5,858.2       18,151.7  

Receive Float / Pay Fixed

    431.1       1,701.9       2,727.1       4,860.2       31.0       (752.8     14.1       (707.5     400.1       2,454.7       2,712.9       5,567.7  

Receive Float / Pay Float

    —         —         —         —         —         —         —         —         —         —         —         —    

Receive Fixed / Pay Fixed

    —         —         —         —         —         —         —         —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    3,866.9       10,591.2       8,619.7       23,077.9       1,657.1       (2,347.3     48.5       (641.5     2,209.8       12,938.5       8,571.1       23,719.5  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Mizuho Trust & Banking

 

 

Receive Fixed / Pay Float

    —         —         25.0       25.0       —         —         25.0       25.0       —         —         —         —    

Receive Float / Pay Fixed

    —         160.0       345.1       505.1       (20.0     30.0       (77.6     (67.6     20.0       130.0       422.8       572.8  

Receive Float / Pay Float

    —         —         —         —         —         —                 —                 —         —         —         —         —    

Receive Fixed / Pay Fixed

    —         —         —         —         —         —         —         —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    —         160.0       370.1       530.1       (20.0     30.0       (52.6     (42.6     20.0       130.0       422.8       572.8  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reference:

Deferred Hedge Gains/Losses on Derivative Transactions Qualifying for Hedge Accounting

 

     (Billions of yen)  
     As of September 30, 2020     Change     As of March 31, 2020  
     Deferred Hedge Gains/Losses     Deferred Hedge Gains/Losses     Deferred Hedge Gains/Losses  
     Gains      Losses            Gains     Losses           Gains      Losses         

Aggregate Figures

     1,287.8        1,198.0        89.8       (108.7     (101.1     (7.5     1,396.6        1,299.1        97.4  

Mizuho Bank

     1,215.7        1,117.3        98.4       (105.7     (100.0     (5.6     1,321.4        1,217.3        104.1  

Mizuho Trust & Banking

     72.1        80.6        (8.5     (3.0     (1.1     (1.9     75.1        81.8        (6.6

 

Note: Above figures reflect all derivative transactions qualifying for hedge accounting, and are before net of applicable income taxes and others.

 

2-13


Mizuho Financial Group, Inc.

 

8. Employee Retirement Benefits

Non-Consolidated

Retirement Benefit Obligations

Aggregate Figures for the 2 Banks

 

                                                                                                   
          (Millions of yen)  
          First Half of
Fiscal 2020
       
                Change     First Half of
Fiscal 2019
 

Retirement Benefit Obligations (at the beginning of the fiscal year)

   (A)      1,220,755       (25,113         1,245,869  

Discount Rate (%)

        (0.00)~0.62         0.00~0.70  

Fair Value of Plan Assets (at the beginning of the fiscal year)

   (B)      1,997,428       (160,525     2,157,954  

Unrecognized Actuarial Differences (at the beginning of the fiscal year)

   (C)      (154,639         219,803       (374,443

Prepaid Pension Cost (at the beginning of the fiscal year)

   (B)+ (C) - (A)      622,033       84,391       537,641  

 

Mizuho Bank

 

         

Retirement Benefit Obligations (at the beginning of the fiscal year)

   (A)      1,072,553       (23,859     1,096,412  

Discount Rate (%)

        (0.00)~0.62         0.00~0.70  

Fair Value of Plan Assets (at the beginning of the fiscal year)

   (B)          1,756,585       (166,223     1,922,809  

Unrecognized Actuarial Differences (at the beginning of the fiscal year)

   (C)      (127,758     216,762       (344,521

Prepaid Pension Cost (at the beginning of the fiscal year)

   (B)+ (C) - (A)      556,273       74,397       481,875  

 

Mizuho Trust & Banking

 

         

Retirement Benefit Obligations (at the beginning of the fiscal year)

   (A)      148,201       (1,254     149,456  

Discount Rate (%)

        (0.00)~0.62         0.00~0.70  

Fair Value of Plan Assets (at the beginning of the fiscal year)

   (B)      240,842       5,697       235,145  

Unrecognized Actuarial Differences (at the beginning of the fiscal year)

   (C)      (26,881     3,040       (29,922

Prepaid Pension Cost (at the beginning of the fiscal year)

   (B)+ (C) - (A)      65,759       9,993       55,766  

 

2-14


Mizuho Financial Group, Inc.

 

                                                                                                   
Income (Expenses) related to Employee Retirement Benefits          
Aggregate Figures for the 2 Banks          
          (Millions of yen)  
          First Half of
Fiscal 2020
    First Half of  
                Change     Fiscal 2019  

Service Cost

        (13,753     999       (14,752

Interest Cost

        (1,785     (221     (1,564

Expected Return on Plan Assets

                      17,376       13       17,363  

Accumulation (Amortization) of Unrecognized Actuarial Differences

        13,763       (17,031     30,795  

Accumulation (Amortization) of Unrecognized Prior Service Cost

        52,391             54,693       (2,301

Gains on Cancellation of Employee Retirement Benefit Trust

        7,895       7,895       —    

Losses on Transfer to Defined Contribution Pension Plan

        (2,519     (2,519     —    

Other

        (4,226     (2,488     (1,738
     

 

 

   

 

 

   

 

 

 

Total

        69,141       41,340                27,801  
     

 

 

   

 

 

   

 

 

 

 

Note: Accumulation (Amortization) of Unrecognized Prior Service Cost, Gains on Cancellation of Employee Retirement Benefit Trust and Losses on Transfer to Defined Contribution Pension Plan that arose in Fiscal 2020 are recorded to Extraordinary Gains (Losses) (¥57,767 million).

 

 

Mizuho Bank

 

 

          (Millions of yen)  
          First Half of
Fiscal 2020
    First Half of  
                Change     Fiscal 2019  

Service Cost

        (11,609     894       (12,504

Interest Cost

        (1,566     (191     (1,374

Expected Return on Plan Assets

                 15,570       17       15,552  

Accumulation (Amortization) of Unrecognized Actuarial Differences

                 12,435       (16,225     28,661  

Accumulation (Amortization) of Unrecognized Prior Service Cost

        45,822             47,836       (2,013

Gains on Cancellation of Employee Retirement Benefit Trust

        7,895       7,895       —    

Losses on Transfer to Defined Contribution Pension Plan

        (2,187     (2,187     —    

Other

        (3,826     (2,251     (1,575
     

 

 

   

 

 

   

 

 

 

Total

        62,532       35,786                26,745  
     

 

 

   

 

 

   

 

 

 

 

Note: Accumulation (Amortization) of Unrecognized Prior Service Cost, Gains on Cancellation of Employee Retirement Benefit Trust and Losses on Transfer to Defined Contribution Pension Plan that arose in Fiscal 2020 are recorded to Extraordinary Gains (Losses) (¥51,530 million).

Mizuho Trust & Banking

 

                                                                                                   
          (Millions of yen)  
          First Half of
Fiscal  2020
    First Half of  
                Change     Fiscal 2019  

Service Cost

        (2,143     104       (2,248

Interest Cost

        (218     (29     (189

Expected Return on Plan Assets

             1,805       (4     1,810  

Accumulation (Amortization) of Unrecognized Actuarial Differences

        1,328       (805     2,134  

Accumulation (Amortization) of Unrecognized Prior Service Cost

                   6,569               6,857       (287

Losses on Transfer to Defined Contribution Pension Plan

        (331     (331     —    

Other

        (400     (237     (162
     

 

 

   

 

 

   

 

 

 

Total

        6,609       5,553                  1,056  
     

 

 

   

 

 

   

 

 

 

 

Note: Accumulation (Amortization) of Unrecognized Prior Service Cost and Losses on Transfer to Defined Contribution Pension Plan that arose in Fiscal 2020 are recorded to Extraordinary Gains (Losses) (¥6,237 million).

 

2-15


Mizuho Financial Group, Inc.

 

                                                                                                   
Consolidated          
Retirement Benefit Obligations          
          (Millions of yen)  
          First Half of
Fiscal 2020
    First Half of  
                Change     Fiscal 2019  

Retirement Benefit Obligations (at the beginning of the fiscal year)

   (A)      1,440,341       (21,896     1,462,237  

Fair Value of Plan Assets (at the beginning of the fiscal year)

   (B)      2,225,010       (159,158     2,384,168  

Unrecognized Actuarial Differences (at the beginning of the fiscal year)

   (C)      (138,808     227,368       (366,177

Net Defined Benefit Asset (at the beginning of the fiscal year)

   (D)      846,782       (136,021     982,804  

Net Defined Benefit Liability (at the beginning of the fiscal year)

   (A)-(B)+(D)               62,113               1,240                60,873  

 

Income (Expenses) related to Employee Retirement Benefits

 

 

          (Millions of yen)  
          First Half of
Fiscal 2020
    First Half of  
                Change     Fiscal 2019  

Service Cost

        (20,725     999       (21,725

Interest Cost

        (2,144     (260)       (1,884

Expected Return on Plan Assets

        19,460       (1     19,461  

Accumulation (Amortization) of Unrecognized Actuarial Differences

        12,439       (17,800     30,239  

Accumulation (Amortization) of Unrecognized Prior Service Cost

        61,969       64,739       (2,769

Gains on Cancellation of Employee Retirement Benefit Trust

        7,895       7,895       —    

Losses on Transfer to Defined Contribution Pension Plan

        (3,320     (3,320     —    

Other

        (7,341     (3,764     (3,576
     

 

 

   

 

 

   

 

 

 

Total

        68,232       48,487       19,745  
     

 

 

   

 

 

   

 

 

 

 

Note: Accumulation (Amortization) of Unrecognized Prior Service Cost,Gains on Cancellation of Employee Retirement Benefit Trust and Losses on Transfer to Defined Contribution Pension Plan that arose in Fiscal 2020, except for a portion thereof, are recorded to Extraordinary Gains (Losses) (¥66,579 million).

 

2-16


Mizuho Financial Group, Inc.

 

9. Capital Ratio

Mizuho Financial Group

 

     (%, Billions of yen)  
     Consolidated  
     As of
September 30, 2020

(Preliminary)
    As of
March 31,
2020
 

International Standard

          Change  

(1) Total Capital Ratio

     17.28        0.03       17.25  

(2) Tier 1 Capital Ratio

     14.69        0.17       14.52  

(3) Common Equity Tier 1 Capital Ratio

     11.57        (0.08     11.65  

(4) Total Capital

     11,132.7        410.4       10,722.2  

(5) Tier 1 Capital

     9,467.5        443.0       9,024.4  

(6) Common Equity Tier 1 Capital

     7,452.6        207.8       7,244.7  

(7) Risk weighted Assets

     64,404.9        2,263.7       62,141.2  

(8) Total Required Capital (7) X8%

     5,152.3        181.1       4,971.2  

Mizuho Bank

 

     Consolidated      Non-Consolidated  
     As of
September 30, 2020

(Preliminary)
    As of
March 31,
2020
     As of
September 30,
2020

(Preliminary)
 

International Standard

          Change  

(1) Total Capital Ratio

     17.30        0.01       17.29        17.71  

(2) Tier 1 Capital Ratio

     14.66        0.16       14.50        14.93  

(3) Common Equity Tier 1 Capital Ratio

     11.30        (0.09     11.39        11.34  

(4) Total Capital

     10,337.8        473.1       9,864.6        9,943.4  

(5) Tier 1 Capital

     8,764.9        490.2       8,274.7        8,380.6  

(6) Common Equity Tier 1 Capital

     6,755.5        254.1       6,501.3        6,368.9  

(7) Risk weighted Assets

     59,749.2        2,708.9       57,040.2        56,116.4  

(8) Total Required Capital (7) X8%

     4,779.9        216.7       4,563.2        4,489.3  

 

Mizuho Trust & Banking

 

 

     Consolidated      Non-Consolidated  
     As of
September 30, 2020

(Preliminary)
    As of
March 31,
2020
     As of
September 30,
2020

(Preliminary)
 

International Standard

          Change  

(1) Total Capital Ratio

     26.27        2.53       23.74        25.52  

(2) Tier 1 Capital Ratio

     26.24        2.58       23.66        25.49  

(3) Common Equity Tier 1 Capital Ratio

     26.24        2.60       23.64        25.49  

(4) Total Capital

     509.6        18.7       490.8        494.2  

(5) Tier 1 Capital

     509.0        19.8       489.2        493.6  

(6) Common Equity Tier 1 Capital

     509.0        20.2       488.7        493.6  

(7) Risk weighted Assets

     1,939.5        (127.7     2,067.3        1,936.5  

(8) Total Required Capital (7) X8%

     155.1        (10.2     165.3        154.9  

 

2-17


Mizuho Financial Group, Inc.

 

II. REVIEW OF CREDITS

1. Status of Non-Accrual, Past Due & Restructured Loans

 

 

The figures below are presented net of partial direct write-offs.

 

Treatment of accrued interest is based on the results of the self-assessment of assets.

(All loans to obligors classified in the self-assessment of assets as Bankrupt Obligors, Substantially Bankrupt Obligors, and Intensive Control Obligors are categorized as non-accrual loans.)

Consolidated

 

     (Millions of yen, %)  
     As of September 30, 2020     As of March 31, 2020  
            %      Change     %            %  

Loans to Bankrupt Obligors

     32,552        0.03        16,613       0.01       15,938        0.01  

Non-Accrual Delinquent Loans

     412,673        0.47        11,657       (0.00     401,016        0.48  

Loans Past Due for 3 Months or More

     559        0.00        (909     (0.00     1,468        0.00  

Restructured Loans

     311,710        0.36        55,280       0.05       256,429        0.30  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total

     757,496        0.87        82,642       0.06       674,853        0.80  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total Loans

     86,501,633        100.00        3,033,447         83,468,185        100.00  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

 
Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

 

Amount of Partial Direct Write-offs

     99,976           20,150         79,826     

Trust Account

 

     As of September 30, 2020     As of March 31, 2020  
            %      Change     %            %  

Loans to Bankrupt Obligors

     —          —          —         —         —          —    

Non-Accrual Delinquent Loans

     —          —          —         —         —          —    

Loans Past Due for 3 Months or More

     —          —          —         —         —          —    

Restructured Loans

     —          —          —         —         —          —    
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total

     —          —          —         —         —          —    
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total Loans

     5,536        100.00        (3,236       8,773        100.00  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

 
Consolidated + Trust Account                                        
     As of September 30, 2020     As of March 31, 2020  
            %      Change     %            %  

Loans to Bankrupt Obligors

     32,552        0.03        16,613       0.01       15,938        0.01  

Non-Accrual Delinquent Loans

     412,673        0.47        11,657       (0.00     401,016        0.48  

Loans Past Due for 3 Months or More

     559        0.00        (909     (0.00     1,468        0.00  

Restructured Loans

     311,710        0.36        55,280       0.05       256,429        0.30  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total

     757,496        0.87        82,642       0.06       674,853        0.80  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total Loans

     86,507,169        100.00        3,030,210         83,476,958        100  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

 

 

Trust account represents trust accounts that guarantee principals in the agreement.

 

2-18


Mizuho Financial Group, Inc.

 

Non-Consolidated

 

     (Millions of yen, %)  
Aggregate Figures for the 2 Banks    As of September 30, 2020     As of March 31, 2020  
(Banking Account + Trust Account)           %      Change     %            %  

Loans to Bankrupt Obligors

     30,670        0.03        15,884       0.01       14,786        0.01  

Non-Accrual Delinquent Loans

     390,651        0.44        6,946       (0.00     383,705        0.45  

Loans Past Due for 3 Months or More

     559        0.00        (909     (0.00     1,468        0.00  

Restructured Loans

     264,589        0.30        42,578       0.03       222,011        0.26  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total

     686,471        0.78        64,499       0.04       621,972        0.73  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total Loans

     87,212,482        100.00        2,964,964         84,247,518        100.00  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

 

 

Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

 

 

Amount of Partial Direct Write-offs

     94,150           19,572         74,578     

 

Mizuho Bank

 

               

Loans to Bankrupt Obligors

     30,670        0.03        15,884       0.01       14,786        0.01  

Non-Accrual Delinquent Loans

     383,725        0.45        4,252       (0.01     379,472        0.46  

Loans Past Due for 3 Months or More

     559        0.00        (909     (0.00     1,468        0.00  

Restructured Loans

     263,835        0.31        42,964       0.04       220,871        0.27  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total

     678,791        0.81        62,192       0.04       616,599        0.76  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total Loans

     83,740,979        100.00        2,869,710         80,871,269        100.00  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

 

 

Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

 

 

Amount of Partial Direct Write-offs

     93,935           19,572         74,362     

 

Mizuho Trust & Banking

 

               

(Banking Account)

               

Loans to Bankrupt Obligors

     —          —          —         —         —          —    

Non-Accrual Delinquent Loans

     6,926        0.19        2,693       0.07       4,232        0.12  

Loans Past Due for 3 Months or More

     —          —          —         —         —          —    

Restructured Loans

     753        0.02        (386     (0.01     1,140        0.03  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total

     7,679        0.22        2,306       0.06       5,373        0.15  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total Loans

     3,465,966        100.00        98,490         3,367,475        100.00  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

 

 

Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

 

 

Amount of Partial Direct Write-offs

     215           (0       215     

 

(Trust Account)

               

Loans to Bankrupt Obligors

     —          —          —         —         —          —    

Non-Accrual Delinquent Loans

     —          —          —         —         —          —    

Loans Past Due for 3 Months or More

     —          —          —         —         —          —    

Restructured Loans

     —          —          —         —         —          —    
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total

     —          —          —         —         —          —    
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total Loans

     5,536        100.00        (3,236       8,773        100.00  
  

 

 

    

 

 

    

 

 

     

 

 

    

 

 

 

 

Trust account represents trust accounts that guarantee principals in the agreement.

 

2-19


Mizuho Financial Group, Inc.

 

2. Status of Reserves for Possible Losses on Loans

Consolidated

 

     (Millions of yen)  
     As of September 30, 2020     As of
March 31, 2020
 
            Change  

Reserves for Possible Losses on Loans

          477,516             53,070            424,446  

General Reserve for Possible Losses on Loans

     301,431        62,396       239,035  

Specific Reserve for Possible Losses on Loans

     176,084        (9,325     185,410  

Reserve for Possible Losses on Loans to Restructuring Countries

     —          —         —    

 

Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

 

 

Amount of Partial Direct Write-offs

     109,898        20,681       89,216  

Non-Consolidated

Aggregate Figures for the 2 Banks

 

     (Millions of yen)  
     As of September 30, 2020     As of
March 31, 2020
 
            Change  

Reserves for Possible Losses on Loans

          441,210             52,392            388,818  

General Reserve for Possible Losses on Loans

     277,244        60,647       216,597  

Specific Reserve for Possible Losses on Loans

     163,965        (8,255     172,221  

Reserve for Possible Losses on Loans to Restructuring Countries

     —          —         —    

 

Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

 

 

Amount of Partial Direct Write-offs

     103,382        19,859       83,523  

 

Mizuho Bank

 

       

Reserves for Possible Losses on Loans

     437,768        52,639       385,129  

General Reserve for Possible Losses on Loans

     274,931        60,866       214,064  

Specific Reserve for Possible Losses on Loans

     162,836        (8,227     171,064  

Reserve for Possible Losses on Loans to Restructuring Countries

     —          —         —    

 

Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

 

 

Amount of Partial Direct Write-offs

     103,167        19,859       83,308  

 

Mizuho Trust & Banking

 

       

Reserves for Possible Losses on Loans

     3,441        (247     3,689  

General Reserve for Possible Losses on Loans

     2,313        (219     2,532  

Specific Reserve for Possible Losses on Loans

     1,128        (27     1,156  

Reserve for Possible Losses on Loans to Restructuring Countries

     —          —         —    

 

Above figures are presented net of partial direct write-offs, the amounts of which are indicated in the table below.

 

 

Amount of Partial Direct Write-offs

     215        (0     215  

 

Reserve for Possible Losses on Entrusted Loans (¥17 million and ¥27 million for September 30, 2020 and March 31, 2020, respectively) is not included in the above figures for Trust Account.

 

2-20


Mizuho Financial Group, Inc.

 

3. Reserve Ratios for Non-Accrual, Past Due & Restructured Loans

Consolidated

 

     (%)  
     As of September 30, 2020     As of
March 31, 2020
 
            Change  

Mizuho Financial Group

         63.03            0.14           62.89  

 

Above figures are presented net of partial direct write-offs.

 

Non-Consolidated

 

 

 

     (%)  
     As of September 30, 2020     As of
March 31, 2020
 
            Change  

Total

              64.27                 1.75                62.51  

Mizuho Bank

     64.49        2.03       62.46  

Mizuho Trust & Banking (Banking Account)

     44.81        (23.84     68.65  

 

Above figures are presented net of partial direct write-offs.

 

 

2-21


Mizuho Financial Group, Inc.

 

4. Status of Non Performing Loans based on the Financial Reconstruction Act (“FRA”)

Consolidated

 

     (Millions of yen)  
     As of September 30, 2020     As of
March 31, 2020
 
            Change  

Claims against Bankrupt and Substantially Bankrupt Obligors

     93,343        34,131       59,212  

Claims with Collection Risk

     382,844        (890     383,734  

Claims for Special Attention

     312,269        54,371       257,898  

Sub-total[1]

     788,458        87,612       700,845  

Normal Claims

     95,324,350        2,663,058       92,661,291  

Total[2]

     96,112,808        2,750,670       93,362,137  
     (%)  

NPL ratio[1]/[2]

     0.82        0.06       0.75  

 

Above figures are presented net of partial direct write-offs.

 

 

Trust Account

 

 

     (Millions of yen)  
     As of September 30, 2020     As of
March 31, 2020
 
            Change  

Claims against Bankrupt and Substantially Bankrupt Obligors

     —          —         —    

Claims with Collection Risk

     —          —         —    

Claims for Special Attention

     —          —         —    

Sub-total[3]

     —          —         —    

Normal Claims

     5,536        (3,236     8,773  

Total[4]

     5,536        (3,236     8,773  
     (%)  

NPL ratio[3]/[4]

     —          —         —    

Consolidated + Trust Account

 

     (Millions of yen)  
     As of September 30, 2020     As of
March 31, 2020
 
            Change  

Claims against Bankrupt and Substantially Bankrupt Obligors

     93,343        34,131       59,212  

Claims with Collection Risk

     382,844        (890     383,734  

Claims for Special Attention

     312,269        54,371       257,898  

Sub-total[5]

     788,458        87,612       700,845  

Normal Claims

     95,329,886        2,659,821       92,670,065  

Total[6]

     96,118,344        2,747,433       93,370,910  
     (%)  

NPL ratio[5]/[6]

     0.82        0.06       0.75  

 

Trust account represents trust accounts that guarantee principals in the agreement.

 

2-22


Mizuho Financial Group, Inc.

 

Non-Consolidated

 

     (Millions of yen)  
Aggregate Figures for the 2 Banks    As of September 30, 2020     As of  
(Banking Account + Trust Account)           Change     March 31, 2020  

Claims against Bankrupt and Substantially Bankrupt Obligors

     84,471        33,428       51,042  

Claims with Collection Risk

     382,473        (4,059     386,532  

Claims for Special Attention

     265,149        41,669       223,480  

Sub-total[1]

     732,094        71,038       661,055  

Normal Claims

     96,285,815        2,394,901       93,890,914  

Total[2]

     97,017,910        2,465,940       94,551,969  
     (%)  

NPL ratio[1]/[2]

     0.75        0.05       0.69  
Above figures are presented net of partial direct write-offs.

 

Mizuho Bank

 

       
     (Millions of yen)  

Claims against Bankrupt and Substantially Bankrupt Obligors

     84,081        33,478       50,602  

Claims with Collection Risk

     375,937        (6,802     382,739  

Claims for Special Attention

     264,395        42,055       222,340  

Sub-total[3]

     724,414        68,731       655,682  

Normal Claims

     92,804,559        2,301,524       90,503,034  

Total[4]

     93,528,973        2,370,256       91,158,717  
     (%)  

NPL ratio[3]/[4]

     0.77        0.05       0.71  
Above figures are presented net of partial direct write-offs.        

 

Mizuho Trust & Banking

 

(Banking Account)

 

       
     (Millions of yen)  

Claims against Bankrupt and Substantially Bankrupt Obligors

     389        (50     439  

Claims with Collection Risk

     6,536        2,743       3,793  

Claims for Special Attention

     753        (386     1,140  

Sub-total[5]

     7,679        2,306       5,373  

Normal Claims

     3,475,719        96,613       3,379,106  

Total[6]

     3,483,399        98,920       3,384,479  
     (%)  

NPL ratio[5]/[6]

     0.22        0.06       0.15  

Above figures are presented net of partial direct write-offs.

       

 

(Trust Account)

 

       
     (Millions of yen)  

Claims against Bankrupt and Substantially Bankrupt Obligors

     —          —         —    

Claims with Collection Risk

     —          —         —    

Claims for Special Attention

     —          —         —    

Sub-total[7]

     —          —         —    

Normal Claims

     5,536        (3,236     8,773  

Total[8]

     5,536        (3,236     8,773  
     (%)  

NPL ratio[7]/[8]

     —          —         —    

 

Trust account represents trust accounts that guarantee principals in the agreement.

 

2-23


Mizuho Financial Group, Inc.

 

5. Coverage on Non Performing Loans based on the FRA

Non-Consolidated

(1) Non Performing Loans based on the FRA and Coverage Amount

Aggregate Figures for the 2 Banks (Banking Account)

 

     (Billions of yen)  
     As of September 30, 2020     As of  
            Change     March 31, 2020  

Claims against Bankrupt and Substantially Bankrupt Obligors

     84.4        33.4       51.0  

Collateral, Guarantees, and equivalent

     77.9        32.6       45.2  

Reserve for Possible Losses

     6.5        0.7       5.7  

Claims with Collection Risk

     382.4        (4.0     386.5  

Collateral, Guarantees, and equivalent

     156.5        7.0       149.5  

Reserve for Possible Losses

     156.9        (10.8     167.8  

Claims for Special Attention

     265.1        41.6       223.4  

Collateral, Guarantees, and equivalent

     80.1        11.9       68.2  

Reserve for Possible Losses

     42.1        5.5       36.5  
  

 

 

    

 

 

   

 

 

 

Total

              732.0                 71.0                661.0  
  

 

 

    

 

 

   

 

 

 

Collateral, Guarantees, and equivalent

     314.7        51.6       263.1  

Reserve for Possible Losses

     205.6        (4.5     210.2  
Mizuho Bank        

Claims against Bankrupt and Substantially Bankrupt Obligors

     84.0        33.4       50.6  

Collateral, Guarantees, and equivalent

     77.5        32.6       44.8  

Reserve for Possible Losses

     6.5        0.7       5.7  

Claims with Collection Risk

     375.9        (6.8     382.7  

Collateral, Guarantees, and equivalent

     151.8        4.2       147.6  

Reserve for Possible Losses

     155.8        (10.8     166.7  

Claims for Special Attention

     264.3        42.0       222.3  

Collateral, Guarantees, and equivalent

     80.1        11.8       68.2  

Reserve for Possible Losses

     41.9        5.6       36.3  
  

 

 

    

 

 

   

 

 

 

Total

     724.4        68.7       655.6  
  

 

 

    

 

 

   

 

 

 

Collateral, Guarantees, and equivalent

     309.5        48.8       260.7  

Reserve for Possible Losses

     204.4        (4.4     208.8  
Mizuho Trust & Banking (Banking Account)        

Claims against Bankrupt and Substantially Bankrupt Obligors

     0.3        (0.0     0.4  

Collateral, Guarantees, and equivalent

     0.3        (0.0     0.4  

Reserve for Possible Losses

     —          —         —    

Claims with Collection Risk

     6.5        2.7       3.7  

Collateral, Guarantees, and equivalent

     4.7        2.7       1.9  

Reserve for Possible Losses

     1.1        (0.0     1.1  

Claims for Special Attention

     0.7        (0.3     1.1  

Collateral, Guarantees, and equivalent

     0.0        0.0       0.0  

Reserve for Possible Losses

     0.1        (0.0     0.2  
  

 

 

    

 

 

   

 

 

 

Total

     7.6        2.3       5.3  
  

 

 

    

 

 

   

 

 

 

Collateral, Guarantees, and equivalent

     5.1        2.7       2.3  

Reserve for Possible Losses

     1.2        (0.1     1.3  
Reference: Trust Account        

Claims against Bankrupt and Substantially Bankrupt Obligors

     —          —         —    

Collateral, Guarantees, and equivalent

     —          —         —    

Claims with Collection Risk

     —          —         —    

Collateral, Guarantees, and equivalent

     —          —         —    

Claims for Special Attention

     —          —         —    

Collateral, Guarantees, and equivalent

     —          —         —    
  

 

 

    

 

 

   

 

 

 

Total

     —          —         —    
  

 

 

    

 

 

   

 

 

 

Collateral, Guarantees, and equivalent

     —          —         —    

 

* Trust account represents trust accounts that guarantee principals in the agreement.

 

2-24


Mizuho Financial Group, Inc.

 

(2) Coverage Ratio

Aggregate Figures for the 2 Banks (Banking Account)

 

     (Billions of yen)  
     As of September 30, 2020     As of
March 31, 2020
 
            Change  

Coverage Amount

     520.3        47.0       473.3  

Reserves for Possible Losses on Loans

     205.6        (4.5     210.2  

Collateral, Guarantees, and equivalent

              314.7                 51.6                263.1  
     (%)  

Coverage Ratio

     71.0        (0.5     71.6  

Claims against Bankrupt and Substantially Bankrupt Obligors

     100.0        —         100.0  

Claims with Collection Risk

     81.9        (0.1     82.1  

Claims for Special Attention

     46.1        (0.7     46.9  

Claims against Special Attention Obligors

     47.8        (2.9     50.7  
Reserve Ratio against Non-collateralized Claims

 

     (%)  

Claims against Bankrupt and Substantially Bankrupt Obligors

     100.0        —         100.0  

Claims with Collection Risk

     69.5        (1.3     70.8  

Claims for Special Attention

     22.7        (0.7     23.5  

Claims against Special Attention Obligors

     24.6        1.3       23.3  
Reference: Reserve Ratio

 

     (%)  

Claims against Special Attention Obligors

     17.08        2.06       15.01  

Claims against Watch Obligors excluding Special Attention Obligors

     6.31        1.39       4.91  

Claims against Normal Obligors

     0.09        (0.00     0.09  
Mizuho Bank

 

     (Billions of yen)  

Coverage Amount

     513.9        44.3       469.5  

Reserves for Possible Losses on Loans

     204.4        (4.4     208.8  

Collateral, Guarantees, and equivalent

     309.5        48.8       260.7  
     (%)  

Coverage Ratio

     70.9        (0.6     71.6  

Claims against Bankrupt and Substantially Bankrupt Obligors

     100.0        —         100.0  

Claims with Collection Risk

     81.8        (0.2     82.1  

Claims for Special Attention

     46.1        (0.8     47.0  

Claims against Special Attention Obligors

     47.8        (2.9     50.8  
Reserve Ratio against Non-collateralized Claims

 

     (%)  

Claims against Bankrupt and Substantially Bankrupt Obligors

     100.0        —         100.0  

Claims with Collection Risk

     69.5        (1.3     70.9  

Claims for Special Attention

     22.7        (0.8     23.5  

Claims against Special Attention Obligors

     24.6        1.3       23.3  
Reference: Reserve Ratio

 

     (%)  

Claims against Special Attention Obligors

     17.08        2.08       14.99  

Claims against Watch Obligors excluding Special Attention Obligors

     6.37        1.42       4.95  

Claims against Normal Obligors

     0.09        (0.00     0.09  

 

2-25


Mizuho Financial Group, Inc.

 

Mizuho Trust & Banking (Banking Account)

 

     (Billions of yen)  
     As of September 30, 2020     As of
March 31, 2020
 
            Change  

Coverage Amount

     6.4        2.6       3.7  

Reserves for Possible Losses on Loans

     1.2        (0.1     1.3  

Collateral, Guarantees, and equivalent

     5.1        2.7       2.3  
     (%)  

Coverage Ratio

     83.6                 13.9       69.7  

Claims against Bankrupt and Substantially Bankrupt Obligors

              100.0        —                  100.0  

Claims with Collection Risk

     89.0        8.3       80.6  

Claims for Special Attention

     29.2        7.1       22.1  

Claims against Special Attention Obligors

     26.9        4.8       22.1  
Reserve Ratio against Non-collateralized Claims

 

     (%)  

Claims against Bankrupt and Substantially Bankrupt Obligors

     —          —         —    

Claims with Collection Risk

     60.8        (0.0     60.8  

Claims for Special Attention

     19.9        (0.2     20.2  

Claims against Special Attention Obligors

     20.0        (0.2     20.2  
Reference: Reserve Ratio

 

     (%)  

Claims against Special Attention Obligors

     18.28        (1.51     19.79  

Claims against Watch Obligors excluding Special Attention Obligors

     1.77        0.29       1.47  

Claims against Normal Obligors

     0.04        (0.01     0.05  

 

2-26


Mizuho Financial Group, Inc.

 

6. Overview of Non-Performing Loans (“NPLs”)

Non-Consolidated

Aggregate Figures for the 2 Banks (Banking Account)

(Billions of yen)

 

LOGO

 

Notes:

     1.     

Claims for Special Attention is denoted on an individual loans basis.

Claims against Special Attention Obligors includes all claims, not limited to Claims for Special Attention.

     2.      The difference between total Non-Accrual, Past Due & Restructured Loans and total Non Performing Loans based on the FRA represents the amount of claims other than loans included in Non Performing Loans based on the FRA.

 

2-27


Mizuho Financial Group, Inc.

 

7. Results of Removal of NPLs from the Balance Sheet

Non-Consolidated

(1) Outstanding Balance of Claims against Bankrupt and Substantially Bankrupt Obligors and Claims with Collection Risk (under the FRA)

Aggregate Figures for the 2 Banks (Banking Account + Trust Account)

 

     (Billions of yen)  
     Fiscal 2017      Fiscal 2018      Fiscal 2019      Fiscal 2020  
     As of March 31,
2018
     As of March 31,
2019
     As of March 31,
2020
     As of September 30, 2020  
                          MHBK      MHTB*      Aggregate Figures for
the 2 Banks
 
                                 Change from
March 31,
2020
 

Claims against Bankrupt and Substantially Bankrupt Obligors

     76.6        33.6        26.5        24.8        0.2        25.0        (1.4

Claims with Collection Risk

     284.2        187.8        139.7        128.0        1.5        129.5        (10.1

Amount Categorized as above up to Fiscal 2017

     360.9        221.4        166.3        152.8        1.7        154.6        (11.6

of which the amount which was in the process of being removed from the balance sheet

     47.2        22.5        20.6        20.9        0.2        21.1        0.5  

Claims against Bankrupt and Substantially Bankrupt Obligors

        19.3        11.5        9.7        0.0        9.8        (1.7

Claims with Collection Risk

        159.8        74.8        54.6        0.1        54.8        (20.0

Amount Newly Categorized as above during Fiscal 2018

        179.1        86.4        64.3        0.2        64.6        (21.8

of which the amount which was in the process of being removed from the balance sheet

        18.2        11.8        10.0        0.0        10.1        (1.7

Claims against Bankrupt and Substantially Bankrupt Obligors

           12.8        19.6        0.0        19.6        6.7  

Claims with Collection Risk

           171.8        112.3        1.8        114.1        (57.7

Amount Newly Categorized as above during Fiscal 2019

           184.7        131.9        1.8        133.7        (50.9

of which the amount which was in the process of being removed from the balance sheet

           12.0        19.6        0.0        19.6        7.6  

Claims against Bankrupt and Substantially Bankrupt Obligors

              29.8        0.0        29.9        29.9  

Claims with Collection Risk

              80.9        2.9        83.9        83.9  

Amount Newly Categorized as above during the First Half of Fiscal 2020

              110.8        3.0        113.8        113.8  

of which the amount which was in the process of being removed from the balance sheet

              12.2        0.0        12.2        12.2  

Claims against Bankrupt and Substantially Bankrupt Obligors

     76.6        52.9        51.0        84.0        0.3        84.4        33.4  

Claims with Collection Risk

     284.2        347.6        386.5        375.9        6.5        382.4        (4.0

Total

     360.9        400.6        437.5        460.0        6.9        466.9        29.3  

of which the amount which was in the process of being removed from the balance sheet

     47.2        40.8        44.5        62.8        0.3        63.2        18.6  

 

*    

   Trust account represents trust accounts that guarantee principals in the agreement.

*     

     

denotes newly categorized amounts.

(2) Breakdown of Reasons for Removal of NPLs from the Balance Sheet in the First Half of Fiscal 2020

 

     (Billions of yen)  
     Aggregate Figures
for the 2 Banks
(Banking Account
+ Trust Account)
    MHBK     MHTB
(Banking Account
+ Trust Account)
 

Liquidation

     (2.7     (2.7     —    

Restructuring

     (1.0     (1.0     —    

Improvement in Business Performance due to Restructuring

     —         —         —    

Loan Sales

     (16.9     (16.9     —    

Direct Write-off

     (21.2     (21.2     —    

Other

     (42.5     (42.2     (0.3

Debt recovery

     (8.1     (8.0     (0.1

Improvement in Business Performance

     (34.3     (34.1     (0.1
  

 

 

   

 

 

   

 

 

 

Total

     (84.4     (84.1     (0.3
  

 

 

   

 

 

   

 

 

 

 

2-28


Mizuho Financial Group, Inc.

 

8. Status of Loans by Industry

(1) Outstanding Balances and Non-Accrual, Past Due & Restructured Loans by Industry

Non-Consolidated

Aggregate Figures for the 2 Banks (Banking Account + Trust Account)

 

     (Billions of yen)  
     As of September 30, 2020     As of March 31, 2020  
     Outstanding
Balance
     Non-Accrual,
Past Due &
Restructured
Loans
     Change     Outstanding
Balance
     Non-Accrual,
Past Due &
Restructured
Loans
 
     Outstanding
Balance
    Non-Accrual,
Past Due &
Restructured
Loans
 

Domestic Total
(excluding Loans Booked Offshore)

     62,850.6        579.6        3,902.9       68.1       58,947.6        511.4  

Manufacturing

     11,626.7        158.8        1,987.8       18.3       9,638.9        140.5  

Agriculture & Forestry

     52.0        1.1        (2.6     0.2       54.7        0.8  

Fishery

     2.7        0.3        (0.5     —         3.3        0.3  

Mining, Quarrying Industry & Gravel Extraction Industry

     350.5        0.1        123.6       (0.1     226.9        0.2  

Construction

     741.2        6.7        15.7       (1.2     725.4        8.0  

Utilities

     3,021.7        11.2        185.8       (0.2     2,835.9        11.5  

Communication

     1,348.8        10.0        (88.0     (1.4     1,436.9        11.5  

Transportation & Postal Industry

     2,615.8        10.5        255.7       1.1       2,360.1        9.3  

Wholesale & Retail

     5,199.8        141.7        269.7       8.8       4,930.0        132.9  

Finance & Insurance

     8,365.5        11.7        145.1       1.3       8,220.3        10.3  

Real Estate

     9,275.4        39.3        535.2       2.8       8,740.2        36.4  

Commodity Lease

     2,844.6        1.7        (40.3     0.1       2,884.9        1.6  

Service Industries

     3,459.2        112.3        351.3       42.2       3,107.8        70.0  

Local Governments

     707.8        —          (52.4     —         760.3        —    

Governments

     1,934.1        —          490.6       —         1,443.5        —    

Other

     11,304.1        73.5        (273.9     (3.9     11,578.0        77.5  

Overseas Total
(including Loans Booked Offshore)

     24,929.6        106.8        (995.9     (3.6     25,925.5        110.4  

Governments

     341.4        —          (0.8     —         342.2        —    

Financial Institutions

     9,007.9        —          (162.6     —         9,170.5        —    

Other

     15,580.2        106.8        (832.5     (3.6     16,412.7        110.4  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total

     87,780.2        686.4        2,907.0       64.4       84,873.2        621.9  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

*

Loans to Finance & Insurance sector includes loans to MHFG as follows:

   

 As of September 30, 2020: ¥770.0 billion (from MHBK)

   

 As of March 31, 2020: ¥860.0 billion (from MHBK)

*

Amounts of Outstanding Balances are the aggregate figures for banking and trust accounts, and amounts of Non-Accrual, Past Due & Restructured Loans are the aggregate figures for banking and trust accounts with contracts indemnifying the principal amounts.

 

2-29


Mizuho Financial Group, Inc.

 

     (Billions of yen)  
     As of September 30, 2020     As of March 31, 2020  
     Outstanding
Balance
     Non-Accrual,
Past Due &
Restructured
Loans
     Change     Outstanding
Balance
     Non-Accrual,
Past Due &
Restructured
Loans
 
Mizuho Bank    Outstanding
Balance
    Non-Accrual,
Past Due &
Restructured
Loans
 
               

Domestic Total
(excluding Loans Booked Offshore)

     58,812.2        571.9        3,865.4       65.8       54,946.8        506.1  

Manufacturing

     11,157.9        156.9        1,984.2       18.7       9,173.7        138.2  

Agriculture & Forestry

     51.9        1.1        (2.6     0.2       54.6        0.8  

Fishery

     2.7        0.3        (0.5     —         3.3        0.3  

Mining, Quarrying Industry & Gravel Extraction Industry

     348.5        0.1        123.8       (0.1     224.7        0.2  

Construction

     701.1        6.6        11.7       (1.2     689.3        7.9  

Utilities

     2,738.6        11.2        173.7       (0.2     2,564.8        11.5  

Communication

     1,226.4        10.0        (80.3     (1.1     1,306.8        11.2  

Transportation & Postal Industry

     2,409.5        10.5        247.8       1.1       2,161.6        9.3  

Wholesale & Retail

     5,056.1        141.7        273.8       8.8       4,782.3        132.9  

Finance & Insurance

     7,888.8        11.7        187.8       1.3       7,700.9        10.3  

Real Estate

     7,926.7        36.1        476.6       0.1       7,450.1        36.0  

Commodity Lease

     2,615.4        1.7        (52.3     0.1       2,667.8        1.6  

Service Industries

     3,404.5        112.0        352.5       41.9       3,051.9        70.0  

Local Governments

     704.6        —          (48.5     —         753.2        —    

Governments

     1,751.7        —          413.6       —         1,338.0        —    

Other

     10,827.0        71.4        (196.0     (3.8     11,023.0        75.2  

Overseas Total
(including Loans Booked Offshore)

     24,928.7        106.8        (995.7     (3.6     25,924.4        110.4  

Governments

     341.4        —          (0.8     —         342.2        —    

Financial Institutions

     9,007.9        —          (162.6     —         9,170.5        —    

Other

     15,579.3        106.8        (832.2     (3.6     16,411.6        110.4  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total

     83,740.9        678.7        2,869.7       62.1       80,871.2        616.5  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

Mizuho Trust & Banking (Banking Account + Trust Account)

 

 

Domestic Total
(excluding Loans Booked Offshore)

     4,038.4        7.6        37.5       2.3       4,000.8        5.3  

Manufacturing

     468.7        1.9        3.6       (0.3     465.1        2.2  

Agriculture & Forestry

     0.0        —          (0.0     —         0.0        —    

Fishery

     —          —          —         —         —          —    

Mining, Quarrying Industry & Gravel Extraction Industry

     2.0        —          (0.2     —         2.2        —    

Construction

     40.0        0.1        3.9       (0.0     36.0        0.1  

Utilities

     283.1        —          12.0       —         271.0        —    

Communication

     122.4        —          (7.6     (0.3     130.1        0.3  

Transportation & Postal Industry

     206.3        —          7.8       —         198.4        —    

Wholesale & Retail

     143.6        —          (4.0     —         147.6        —    

Finance & Insurance

     476.7        —          (42.6     —         519.3        —    

Real Estate

     1,348.6        3.1        58.5       2.7       1,290.0        0.4  

Commodity Lease

     229.1        —          11.9       —         217.1        —    

Service Industries

     54.6        0.2        (1.2     0.2       55.9        —    

Local Governments

     3.1        —          (3.8     —         7.0        —    

Governments

     182.4        —          76.9       —         105.4        —    

Other

     477.1        2.1        (77.8     (0.0     554.9        2.2  

Overseas Total
(including Loans Booked Offshore)

     0.8        —          (0.2     —         1.1        —    

Governments

     —          —          —         —         —          —    

Financial Institutions

     —          —          —         —         —          —    

Other

     0.8        —          (0.2     —         1.1        —    
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

Total

     4,039.2        7.6        37.3       2.3       4,001.9        5.3  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

 

 

*

Amounts of Outstanding Balances are the aggregate figures for banking and trust accounts, and amounts of Non-Accrual, Past Due & Restructured Loans are the aggregate figures for banking and trust accounts with contracts indemnifying the principal amounts.

 

2-30


Mizuho Financial Group, Inc.

 

(2) Non Performing Loans based on the FRA and Coverage Ratio by Industry

Non-Consolidated

Aggregate Figures for the 2 Banks (Banking Account + Trust Account)

 

    (Billions of yen, %)  
    As of September 30, 2020     As of March 31, 2020  
    Non Performing
Loans based on
the FRA
    Coverage Ratio     Change     Non Performing
Loans based on
the FRA
    Coverage Ratio  
    Non Performing
Loans based on
the FRA
    Coverage Ratio  

Domestic Total
(excluding Loans Booked Offshore)

    600.6       67.9            71.0         0.3            529.5         67.6  

Manufacturing

    170.7       63.0       20.4       (1.1     150.3       64.2  

Agriculture & Forestry

    1.1       41.9       0.2       0.4       0.8       41.5  

Fishery

    0.3       62.6       —         —         0.3       62.6  

Mining, Quarrying Industry & Gravel Extraction Industry

    0.1       77.3       (0.3     (17.1     0.5       94.4  

Construction

    6.9       71.9       (1.4     (0.1     8.3       72.0  

Utilities

    11.2       98.2       (0.2     59.7       11.5       38.5  

Communication

    10.1       71.6       (1.4     5.4       11.5       66.1  

Transportation & Postal Industry

    10.5       66.6       1.1       1.0       9.4       65.5  

Wholesale & Retail

    144.6       56.6       9.3       (1.0     135.3       57.7  

Finance & Insurance

    12.0       91.0       1.3       9.4       10.7       81.6  

Real Estate

    39.8       86.5       4.2       4.7       35.6       81.7  

Commodity Lease

    1.7       84.7       0.0       12.4       1.7       72.3  

Service Industries

    114.3       63.0       41.0       (2.8     73.2       65.9  

Local Governments

    —         —         —         —         —         —    

Other

    76.6       88.8       (3.2     0.3       79.9       88.4  

Overseas Total
(including Loans Booked Offshore)

    131.4       85.4       0.0       (2.1     131.4       87.6  

Governments

    —         —         —         —         —         —    

Financial Institutions

    —         —         —         —         —         —    

Other

    131.4       85.4       0.0       (2.1     131.4       87.6  

Total

    732.0       71.0       71.0       (0.5     661.0       71.6  

 

*

Trust account represents trust accounts that guarantee principals in the agreement.

 

2-31


Mizuho Financial Group, Inc.

 

9. Housing and Consumer Loans & Loans to Small and Medium-Sized Enterprises (“SMEs”) and Individual Customers

(1) Balance of Housing and Consumer Loans

Non-Consolidated

Aggregate Figures for the 2 Banks

(Banking Account + Trust Account)

 

     (Billions of yen)  
     As of September 30, 2020     As of
March 31, 2020
 
            Change  

Housing and Consumer Loans

     8,958.8        (256.9     9,215.7  

Housing Loans for owner’s residential housing

     8,273.6        (189.8     8,463.4  
Mizuho Bank        

Housing and Consumer Loans

     8,891.3        (251.7     9,143.1  

Housing Loans

     8,393.1        (201.9     8,595.0  

for owner’s residential housing

     8,210.9        (185.1     8,396.1  

Consumer loans

     498.2        (49.7     548.0  
Mizuho Trust & Banking (Banking Account + Trust Account)        

Housing and Consumer Loans

     67.4        (5.1     72.6  

Housing Loans for owner’s residential housing

     62.7        (4.6     67.3  

 

•   Above figures are aggregate banking and trust account amounts.

 

(2) Loans to SMEs and Individual Customers

 

Non-Consolidated

 

Aggregate Figures for the 2 Banks

 

(Banking Account + Trust Account)

       
     (%, Billions of yen)  
     As of September 30, 2020     As of
March 31, 2020
 
            Change  

Percentage of Loans to SMEs and Individual Customers, of Total Domestic Loans

     55.3        (2.1     57.4  

Loans to SMEs and Individual Customers

     34,794.3        901.8       33,892.4  
Mizuho Bank        

Percentage of Loans to SMEs and Individual Customers, of Total Domestic Loans

     55.8        (2.2     58.1  

Loans to SMEs and Individual Customers

     32,861.8        905.2       31,956.5  
Mizuho Trust & Banking (Banking Account + Trust Account)        

Percentage of Loans to SMEs and Individual Customers, of Total Domestic Loans

     47.8        (0.5     48.3  

Loans to SMEs and Individual Customers

     1,932.4        (3.4     1,935.9  

 

Above figures are aggregate banking and trust account amounts.

 

Above figures do not include loans booked at overseas offices and offshore loans.

The definition of “Small and Medium-sized Enterprises” is as follows:

    

Enterprises of which the capital is ¥300 million or below (¥100 million or below for the wholesale industry, and ¥50 million or below for the retail, restaurant and commodity lease industries, etc.), or enterprises with full-time employees of 300 or below (100 or below for the wholesale and commodity lease industries etc., 50 or below for the retail and restaurant industries.)

 

2-32


Mizuho Financial Group, Inc.

 

10. Status of Loans by Region

Non-Consolidated

Aggregate Figures for the 2 Banks (Banking Account + Trust Account)

 

     (Billions of yen)  
     As of September 30, 2020     As of March 31, 2020  
            Non-Accrual,
Past Due &
Restructured
Loans
     Change               
     Outstanding
Balance
     Outstanding
Balance
    Non-Accrual,
Past Due &
Restructured
Loans
    Outstanding
Balance
     Non-Accrual,
Past Due &
Restructured
Loans
 

Asia

     7,864.8        40.1        321.5       4.3       7,543.3        35.8  

Hong Kong

     1,972.7        3.9        163.9       (0.4     1,808.8        4.4  

Singapore

     1,190.8        26.3        (95.2     0.1       1,286.0        26.1  

Thailand

     1,054.4        2.0        17.1       0.5       1,037.2        1.4  

Taiwan

     1,009.2        0.0        262.3       (0.0     746.9        0.0  

India

     560.2        2.6        (58.9     (0.1     619.2        2.7  

South Korea

     639.4        0.0        (31.8     0.0       671.2        —    

Indonesia

     489.7        0.9        37.8       (0.0     451.9        0.9  

Philippines

     303.8        0.0        20.9       0.0       282.8        0.0  

China

     220.2        —          0.1       —         220.1        —    

Thailand

     160.2        3.7        (3.9     3.7       164.1        —    

Central and South America

     4,547.5        19.6        (112.9     (2.9     4,660.4        22.5  

Mexico

     414.0        0.7        (12.4     (0.0     426.4        0.8  

Brazile

     174.4        5.9        (76.1     (1.5     250.5        7.5  

North America

     7,420.7        47.3        (1,344.4     3.2       8,765.2        44.1  

United States

     6,548.5        47.3        (1,381.3     3.2       7,929.9        44.1  

Eastern Europe

     328.0        —          50.8       —         277.2        —    

Russia

     231.7        —          60.0       —         171.7        —    

Western Europe

     4,779.4        23.6        225.7       9.7       4,553.6        13.8  

United Kingdom

     1,245.6        7.0        (69.6     7.0       1,315.3        —    

Netherlands

     1,012.1        0.9        (140.0     (0.2     1,152.2        1.2  

Germany

     653.4        10.3        136.6       3.1       516.7        7.2  

Ireland

     256.5        —          4.4       —         252.0        —    

Switzerland

     213.1        —          41.1       —         171.9        —    

France

     214.6        —          (35.9     —         250.6        —    

Turkey

     106.1        —          3.9       —         102.1        —    

Italy

     180.9        —          25.7       —         155.1        —    

Other

     3,152.5        8.2        (116.2     (21.1     3,268.8        29.4  

Australia

     1,526.8        —          1.9       —         1,524.8        —    

Total

     28,093.3        139.0        (975.4     (6.8     29,068.7        145.8  
     As of September 30, 2020     As of March 31, 2020  
            Non-Accrual,
Past Due &
Restructured
Loans
     Change               
     Outstanding
Balance
     Outstanding
Balance
    Non-Accrual,
Past Due &
Restructured
Loans
    Outstanding
Balance
     Non-Accrual,
Past Due &
Restructured
Loans
 

Mizuho Bank (China) ,Ltd

     1,066.6        4.3        8.0       (0.4     1,058.5        4.7  

Mizuho Bank (USA)

     500.2        —          29.6       —         470.6        —    

PT. Bank Mizuho Indonesia

     408.0        0.5        55.2       0.4       352.8        0.1  

 

2-33


Mizuho Financial Group, Inc.

 

III. DEFERRED TAXES

1. Estimation for Calculating Deferred Tax Assets

Non-Consolidated

Mizuho Bank

1. Estimate of future taxable income

 

          (Billions of yen)  
          Total amount
for five years
(from October 1, 2020
to September 30, 2025)
 

Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans)

   1      1,912.0  

Income before Income Taxes

   2      1,408.4  

Tax Adjustments (1)

   3      172.8  

Taxable Income before Current Deductible Temporary Differences (2)

   4      1,581.2  

Effective Statutory Tax Rate

   5      30.62

Deferred Tax Assets corresponding to Taxable Income before Current Deductible Temporary Differences
[ 4 x 5 ]

   6      484.1  

 

(1)

Tax Adjustments are estimated future book-tax differences under the provisions of the corporation tax law and others.

(2)

Taxable Income before Current Deductible Temporary Differences is an estimate of taxable income before adjusting deductible temporary differences as of September 30, 2020.

Reference: Past results of taxable income (tax loss)

 

     (Billions of yen)  

Fiscal 2016

     442.3  

Fiscal 2017

     379.9  

Fiscal 2018

     267.2  

Fiscal 2019

     378.5  

First Half of Fiscal 2020 (estimate)

     160.0  

 

Figures are taxable income (tax loss) amounts per the final corporation tax returns before deducting tax losses carried forward from prior years. Subsequent amendments have not been reflected.

Figure for the first half of fiscal 2020 is an estimate of taxable income.

2. Breakdown of Deferred Tax Assets

 

            (Billions of yen)  
            As of September 30, 2020     As of
March 31,
2020
 
                                         Change      

Reserves for Possible Losses on Loans

     7        153.3       21.3       131.9  

Impairment of Securities

     8        159.2       13.3       145.9  

Net Unrealized Losses on Other Securities

     9        8.6       (13.3     22.0  

Reserve for Employee Retirement Benefits

     10        —         —         —    

Depreciation and Impairment

     11        161.8       (14.5     176.3  

Net Deferred Hedge Losses

     12        —         —         —    

Tax Losses Carried Forward

     13        —         —         —    

Other

     14        255.2       (5.8     261.0  
     

 

 

   

 

 

   

 

 

 

Total Deferred Tax Assets

     15        738.3       0.9       737.3  
     

 

 

   

 

 

   

 

 

 

Valuation Allowance

     16        (160.8     (0.1     (160.6
     

 

 

   

 

 

   

 

 

 

Sub-Total [ 15 + 16 ]

     17        577.5       0.8       576.7  
     

 

 

   

 

 

   

 

 

 

Amount related to Retirement Benefits Accounting

     18        (188.5     (18.2     (170.3

Net Unrealized Gains on Other Securities

     19        (371.9     (67.6     (304.3

Net Deferred Hedge Gains

     20        (20.3     7.5       (27.9

Other

     21        (35.4     1.6       (37.1
     

 

 

   

 

 

   

 

 

 

Total Deferred Tax Liabilities

     22        (616.3     (76.5     (539.7
     

 

 

   

 

 

   

 

 

 

Net Deferred Tax Assets (Liabilities) [17 + 22]

     23        (38.8     (75.7     36.9  

Tax effects related to Net Unrealized Losses (Gains) on

Other Securities *

     24        (373.1     (69.2     (303.8

Tax effects related to Net Deferred Hedge Losses (Gains)

     25        (20.3     7.5       (27.9

Tax effects related to others

     26        354.6       (14.0     368.6  

 

*

Tax effects related to Net Unrealized Losses (Gains) on Other Securities is the amount after deducting Valuation Allowance.

 

Assessment of Recoverability of Deferred Tax Assets is based on 19. Company Classification (Category 2) of “Revised Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No.26).

Future taxable income was estimated using assumptions used in the Business Plan, etc.

The above includes forward-looking information. See the disclaimer at the end of the table of contents located at the beginning of this document.

 

2-34


Mizuho Financial Group, Inc.

 

Mizuho Trust & Banking

1. Estimate of future taxable income

 

          (Billions of yen)  
          Total amount
for five years
(from October 1, 2020
to September 30, 2025)
 

Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans)

   1         182.8  

Income before Income Taxes

   2      195.3  

Tax Adjustments (1)

   3      (54.2

Taxable Income before Current Deductible Temporary Differences (2)

   4      141.0  

Effective Statutory Tax Rate

   5      30.62

Deferred Tax Assets corresponding to Taxable Income before Current Deductible Temporary Differences
[ 4 x 5 ]

   6      43.1  

 

(1)

Tax Adjustments are estimated future book-tax differences under the provisions of the corporation tax law and others.

(2)

Taxable Income before Current Deductible Temporary Differences is an estimate of taxable income before adjusting deductible temporary differences as of September 30, 2020.

Reference: Past results of taxable income (tax loss)

 

     (Billions of yen)  

Fiscal 2016

       52.1  

Fiscal 2017

     40.5  

Fiscal 2018

     39.0  

Fiscal 2019

     31.7  

First Half of Fiscal 2020 (estimate)

     7.0  

 

Figures are taxable income (tax loss) amounts per the final corporation tax returns before deducting tax losses carried forward from prior years. Subsequent amendments have not been reflected.

Figure for the first half of fiscal 2020 is an estimate of taxable income.

2. Breakdown of Deferred Tax Assets

 

            (Billions of yen)  
            As of September 30, 2020     As of
March 31, 2020
 
                                         Change      

Reserves for Possible Losses on Loans

     7        1.1       (0.0     1.1  

Impairment of Securities

     8        9.8       (1.3     11.1  

Net Unrealized Losses on Other Securities

     9        2.0       0.9       1.1  

Reserve for Employee Retirement Benefits

     10        4.2       (3.0     7.2  

Net Deferred Hedge Losses

     11        2.6          0.5       2.0  

Tax Losses Carried Forward

     12        —         —         —    

Other

     13        4.2       (0.8     5.1  
     

 

 

   

 

 

   

 

 

 

Total Deferred Tax Assets

     14           24.1       (3.8       27.9  
     

 

 

   

 

 

   

 

 

 

Valuation Allowance

     15        (12.1     0.4       (12.6
     

 

 

   

 

 

   

 

 

 

Sub-Total [ 14 + 15 ]

     16        11.9       (3.4     15.3  
     

 

 

   

 

 

   

 

 

 

Amount related to Retirement Benefits Accounting

     17        (4.5     (0.0     (4.5

Net Unrealized Gains on Other Securities

     18        (18.4     (4.9     (13.4

Net Deferred Hedge Gains

     19        —         —         —    

Other

     20        (0.3     0.2       (0.5
     

 

 

   

 

 

   

 

 

 

Total Deferred Tax Liabilities

     21        (23.3     (4.7     (18.5
     

 

 

   

 

 

   

 

 

 

Net Deferred Tax Assets (Liabilities) [16 + 21]

     22        (11.4     (8.1     (3.2

Tax effects related to Net Unrealized Losses (Gains) on

Other Securities *

     23        (18.4     (4.9     (13.5

Tax effects related to Net Deferred Hedge Losses (Gains)

     24        2.6       0.5       2.0  

Tax effects related to others

     25        4.4       (3.7     8.2  

 

*

Tax effects related to Net Unrealized Losses (Gains) on Other Securities is the amount after deducting Valuation Allowance.

 

Assessment of Recoverability of Deferred Tax Assets is based on 19. Company Classification (Category 2) of “Revised Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No.26).

Future taxable income was estimated using assumptions used in the Business Plan, etc.

The above includes forward-looking information. See the disclaimer at the end of the table of contents located at the beginning of this document.

 

2-35


Mizuho Financial Group, Inc.

 

IV. OTHERS

1. Breakdown of Deposits (Domestic Offices)

Non-Consolidated

 

     (Billions of yen)  
     As of September 30, 2020     As of
March 31, 2020
 
Aggregate Figures for the 2 Banks           Change  
       

Deposits

     111,266.7        4,390.6       106,876.1  
  

 

 

    

 

 

   

 

 

 

Individual Deposits

     46,586.8        1,568.2       45,018.6  

Corporate Deposits

     56,929.4        2,843.0       54,086.4  

Financial/Government Institutions

     7,750.4        (20.6     7,771.0  

 

Mizuho Bank

 

       

Deposits

     108,133.6        4,353.8       103,779.8  
  

 

 

    

 

 

   

 

 

 

Individual Deposits

     45,730.4        1,570.0       44,160.3  

Corporate Deposits

     55,438.7        2,762.2       52,676.4  

Financial/Government Institutions

     6,964.4        21.4       6,943.0  

 

Mizuho Trust & Banking

 

       

Deposits

     3,133.1        36.8       3,096.2  
  

 

 

    

 

 

   

 

 

 

Individual Deposits

     856.4        (1.7     858.2  

Corporate Deposits

     1,490.6        80.7       1,409.9  

Financial/Government Institutions

     785.9        (42.1     828.0  

 

Above figures do not include deposits booked at overseas offices and offshore deposits.

 

2-36


Mizuho Financial Group, Inc.

 

2. Number of Directors and Employees

(1) Number of Directors

Aggregate Figures for Mizuho Financial Group, the 2 Banks, and Mizuho Securities

 

     As of September 30, 2020     As of
March 31, 2020
 
          Change  

Directors, Executive Officers as defined in the Companies Act, and Auditors

     45        (4     49  

Executive Officers as defined in our internal regulations and Specialist Officers (excluding those doubling as Directors and Executive Officers as defined in the Companies Act)

     119        (9     128  

 

The above numbers have been adjusted for those who are doubling other positions.

 

(2) Number of Employees

 

Consolidated

 

 

 

 

     As of September 30, 2020     As of
March 31, 2020
 
          Change  

Employees (excluding Executive Officers as defined in our internal regulations and Specialist Officers)

     56,383        (881     57,264  

Average number of temporary employees

     15,636        (1,374     17,010  

 

The number of Employees excludes employees seconded outside the company and includes employees seconded from outside the company in each consolidated subsidiary. That number also includes overseas local staff but excludes advisers and temporary employees.

 

3. Number of Offices

 

Domestic: The 2 Banks and Mizuho Securities

 

 

 

 

     As of September 30, 2020     As of
March 31, 2020
 
          Change  

Mizuho Bank

     464        —         464  

Mizuho Trust & Banking

     60        —         60  

Mizuho Securities

     244        (12     256  

 

The above numbers are the numbers of head office, domestic branches (excluding branches and offices for remittance purposes only (46), branches offering account transfer services only (2), branches and offices to maintain shared ATMs only (1), internet branches (1), and pension plan advisory offices (1)), domestic sub-branches, and others.

 

Overseas: The 2 Banks and Mizuho Securities

 

 

 

     As of September 30, 2020     As of
March 31, 2020
 
          Change  

Mizuho Bank

     49        —         49  

Mizuho Trust & Banking

     —          —         —    

Mizuho Securities

     2        —         2  

 

The above numbers are the numbers of overseas branches or relevant offices, and overseas representative offices.

 

2-37


Mizuho Financial Group, Inc.

 

4. Earnings Plan for Fiscal 2020

Consolidated

 

     (Billions of yen)              
     Fiscal 2020              

Ordinary Profits

     460.0      

Profit Attributable to Owners of Parent

     350.0      
Non-Consolidated       

 

Mizuho Bank, Mizuho Trust & Banking

 

      
     (Billions of yen)  
     Fiscal 2020              
     Aggregate Figures
for the 2 Banks
    MHBK     MHTB*  

Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) + Net Gains (Losses) related to ETF

     515.0       475.0       40.0  

Ordinary Profits

     285.0       250.0       35.0  

Net Income

     225.0       195.0       30.0  

Credit-related Costs

     (190.0     (185.0     (5.0

 

Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) for MHTB excludes the amounts of Credit Costs for Trust Accounts.

Note: Following the results from 1H, MHFG revised Earnings Plan for Fiscal 2020.

Consolidated

Ordinary Profits:

The latest announced estimates: ¥400.0 billion, Revised estimates: ¥460.0 billion, Changes from the original estimates: ¥60.0 billion, 15.0%

Profit Attributable to Owners of Parent:

The latest announced estimates: ¥320.0 billion, Revised estimates: ¥350.0 billion, Changes from the original estimates: ¥30.0 billion, 9.3%

Non-Consolidated

Net Business Profits (before Reversal of (Provision for) General Reserve for Losses on Loans) + Net Gains (Losses) related to ETF:

The latest announced estimates: ¥415.0 billion, Revised estimates: ¥515.0 billion, Changes from the original estimates: ¥100.0 billion, 24.0%

Ordinary Profits:

The latest announced estimates: ¥275.0 billion, Revised estimates: ¥285.0 billion, Changes from the original estimates: ¥10.0 billion, 3.6%

Net Income:

The latest announced estimates: ¥215.0 billion, Revised estimates: ¥225.0 billion, Changes from the original estimates: ¥10.0 billion, 4.6%

The above information constitute forward-looking statements. Please see the legend regarding forward-looking statements in CONTENTS.

 

2-38


Mizuho Bank, Ltd.

 

Attachments

COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)

OF MIZUHO BANK

 

     Millions of yen  
     As of
September 30,
2020 (A)
    As of
March 31,
2020 (B)
    Change
(A) - (B)
 

Assets

      

Cash and Due from Banks

   ¥ 40,104,898     ¥ 38,833,234     ¥ 1,271,664  

Call Loans

     678,283       958,359       (280,075

Receivables under Resale Agreements

     3,333,942       8,599,865       (5,265,923

Guarantee Deposits Paid under Securities Borrowing Transactions

     157,087       122,001       35,086  

Other Debt Purchased

     412,646       430,330       (17,683

Trading Assets

     4,972,474       5,013,413       (40,939

Money Held in Trust

     503       503       (0

Securities

     42,991,477       34,372,765       8,618,712  

Loans and Bills Discounted

     83,740,979       80,871,269       2,869,710  

Foreign Exchange Assets

     1,861,555       1,966,593       (105,038

Derivatives other than for Trading

     4,343,885       5,164,666       (820,780

Other Assets

     3,177,217       2,939,258       237,958  

Tangible Fixed Assets

     850,953       843,058       7,894  

Intangible Fixed Assets

     355,541       357,432       (1,890

Prepaid Pension Cost

     615,727       556,273       59,454  

Deferred Tax Assets

     —         36,950       (36,950

Customers’ Liabilities for Acceptances and Guarantees

     6,259,247       6,535,786       (276,538

Reserves for Possible Losses on Loans

     (437,768     (385,129     (52,639

Reserve for Possible Losses on Investments

     (1,584     (2,458     874  
  

 

 

   

 

 

   

 

 

 

Total Assets

   ¥ 193,417,069     ¥ 187,214,174     ¥ 6,202,895  
  

 

 

   

 

 

   

 

 

 

Liabilities

      

Deposits

   ¥ 129,739,024     ¥ 126,337,030     ¥ 3,401,994  

Negotiable Certificates of Deposit

     13,684,178       12,706,349       977,829  

Call Money

     1,153,898       1,213,576       (59,678

Payables under Repurchase Agreements

     7,644,857       7,469,615       175,242  

Guarantee Deposits Received under Securities Lending Transactions

     292,521       276,869       15,652  

Commercial Paper

     921,282       411,089       510,193  

Trading Liabilities

     3,490,398       3,795,423       (305,025

Borrowed Money

     14,269,015       11,394,924       2,874,091  

Foreign Exchange Liabilities

     550,761       716,394       (165,633

Bonds and Notes

     1,002,105       1,100,670       (98,564

Derivatives other than for Trading

     4,177,619       4,843,165       (665,546

Other Liabilities

     2,880,720       3,175,327       (294,607

Reserve for Bonus Payments

     14,705       19,841       (5,135

Reserve for Variable Compensation

     491       765       (274

Reserve for Possible Losses on Sales of Loans

     1,142       637       504  

Reserve for Contingencies

     604       1,770       (1,165

Reserve for Reimbursement of Deposits

     23,407       25,943       (2,536

Reserve for Reimbursement of Debentures

     17,663       18,672       (1,009

Deferred Tax Liabilities

     38,812       —         38,812  

Deferred Tax Liabilities for Revaluation Reserve for Land

     62,555       62,695       (140

Acceptances and Guarantees

     6,259,247       6,535,786       (276,538
  

 

 

   

 

 

   

 

 

 

Total Liabilities

     186,225,016       180,106,550       6,118,465  
  

 

 

   

 

 

   

 

 

 

Net Assets

      

Common Stock and Preferred Stock

     1,404,065       1,404,065       —    

Capital Surplus

     2,286,167       2,286,328       (161

Capital Reserve

     655,450       655,418       32  

Other Capital Surplus

     1,630,716       1,630,910       (194

Retained Earnings

     2,354,886       2,472,640       (117,753

Appropriated Reserve

     353,908       315,177       38,731  

Other Retained Earnings

     2,000,977       2,157,463       (156,485

Retained Earnings Brought Forward

     2,000,977       2,157,463       (156,485
  

 

 

   

 

 

   

 

 

 

Total Shareholders’ Equity

     6,045,118       6,163,034       (117,915
  

 

 

   

 

 

   

 

 

 

Net Unrealized Gains (Losses) on Other Securities, net of Taxes

     941,359       736,239       205,120  

Net Deferred Hedge Gains (Losses), net of Taxes

     67,740       71,693       (3,953

Revaluation Reserve for Land, net of Taxes

     137,834       136,655       1,178  
  

 

 

   

 

 

   

 

 

 

Total Valuation and Translation Adjustments

     1,146,934       944,588       202,345  
  

 

 

   

 

 

   

 

 

 

Total Net Assets

     7,192,053       7,107,623       84,430  
  

 

 

   

 

 

   

 

 

 

Total Liabilities and Net Assets

   ¥ 193,417,069     ¥ 187,214,174     ¥ 6,202,895  
  

 

 

   

 

 

   

 

 

 

 

2-39


Mizuho Bank, Ltd.

 

COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME

(selected items) OF MIZUHO BANK

 

     Millions of yen  
     For the six months ended
September 30, 2020
(A)
     For the six months ended
September 30, 2019
(B)
     Change
(A) - (B)
 

Ordinary Income

   ¥ 1,046,419      ¥ 1,388,581      ¥ (342,161

Interest Income

     593,571        867,423        (273,852

Interest on Loans and Bills Discounted

     431,238        582,940        (151,701

Interest and Dividends on Securities

     112,486        134,804        (22,318

Fee and Commission Income

     249,820        227,012        22,808  

Trading Income

     73,501        67,321        6,179  

Other Operating Income

     92,307        140,491        (48,183

Other Ordinary Income

     37,219        86,333        (49,113
  

 

 

    

 

 

    

 

 

 

Ordinary Expenses

     913,892        1,093,174        (179,281

Interest Expenses

     215,786        541,399        (325,612

Interest on Deposits

     78,339        245,799        (167,459

Fee and Commission Expenses

     47,890        48,740        (850

Trading Expenses

     234        76        158  

Other Operating Expenses

     50,294        42,862        7,432  

General and Administrative Expenses

     392,026        383,927        8,099  

Other Ordinary Expenses

     207,659        76,167        131,492  
  

 

 

    

 

 

    

 

 

 

Ordinary Profits

     132,527        295,407        (162,880
  

 

 

    

 

 

    

 

 

 

Extraordinary Gains

     56,548        336        56,211  
  

 

 

    

 

 

    

 

 

 

Extraordinary Losses

     4,550        5,638        (1,088
  

 

 

    

 

 

    

 

 

 

Income before Income Taxes

     184,525        290,105        (105,580

Income Taxes:

        

Current

     46,504        65,965        (19,460

Deferred

     28,298        5,004        23,293  
  

 

 

    

 

 

    

 

 

 

Net Income

   ¥ 109,722      ¥ 219,135      ¥ (109,413
  

 

 

    

 

 

    

 

 

 

 

2-40


Mizuho Trust & Banking Co., Ltd.

 

COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)

OF MIZUHO TRUST & BANKING

 

     Millions of yen  
     As of
September 30,
2020 (A)
    As of
March 31,
2020 (B)
    Change
(A) - (B)
 

Assets

      

Cash and Due from Banks

   ¥ 2,235,246     ¥ 1,766,799     ¥ 468,446  

Call Loans

     6,345       14,678       (8,332

Guarantee Deposits Paid under Securities Borrowing Transactions

     32,855       198,053       (165,198

Other Debt Purchased

     167,398       32,493       134,905  

Trading Assets

     162,639       169,750       (7,110

Money Held in Trust

     8,018       7,125       892  

Securities

     695,685       958,624       (262,939

Loans and Bills Discounted

     3,465,966       3,367,475       98,490  

Foreign Exchange Assets

     9,110       7,865       1,244  

Other Assets

     270,761       359,752       (88,990

Tangible Fixed Assets

     100,808       86,705       14,102  

Intangible Fixed Assets

     28,021       30,529       (2,507

Prepaid Pension Cost

     78,345       65,759       12,585  

Customers’ Liabilities for Acceptances and Guarantees

     15,818       14,755       1,062  

Reserves for Possible Losses on Loans

     (3,441     (3,689     247  
  

 

 

   

 

 

   

 

 

 

Total Assets

   ¥ 7,273,580     ¥ 7,076,682     ¥ 196,898  
  

 

 

   

 

 

   

 

 

 

Liabilities

      

Deposits

   ¥ 3,133,125     ¥ 3,096,295     ¥ 36,830  

Negotiable Certificates of Deposit

     561,080       664,780       (103,700

Call Money

     626,275       807,706       (181,431

Guarantee Deposits Received under Securities Lending Transactions

     355,615       289,789       65,825  

Trading Liabilities

     166,077       170,146       (4,068

Borrowed Money

     462,502       255,860       206,642  

Foreign Exchange Liabilities

     2       23       (21

Bonds and Notes

     10,000       10,000       —    

Due to Trust Accounts

     1,336,263       1,055,510       280,752  

Other Liabilities

     23,236       142,457       (119,221

Reserve for Bonus Payments

     2,293       2,153       139  

Reserve for Variable Compensation

     190       368       (178

Provision for Retirement Benefits

     1,892       —         1,892  

Reserve for Reimbursement of Deposits

     1,797       1,907       (109

Deferred Tax Liabilities

     11,414       3,220       8,193  

Acceptances and Guarantees

     15,818       14,755       1,062  
  

 

 

   

 

 

   

 

 

 

Total Liabilities

     6,707,585       6,514,977       192,608  
  

 

 

   

 

 

   

 

 

 

Net Assets

      

Common Stock and Preferred Stock

     247,369       247,369       —    

Capital Surplus

     15,505       15,505       —    

Capital Reserve

     15,505       15,505       —    

Retained Earnings

     248,353       253,465       (5,111

Appropriated Reserve

     45,647       41,484       4,163  

Other Retained Earnings

     202,705       211,980       (9,274

Retained Earnings Brought Forward

     202,705       211,980       (9,274
  

 

 

   

 

 

   

 

 

 

Total Shareholders’ Equity

     511,228       516,339       (5,111
  

 

 

   

 

 

   

 

 

 

Net Unrealized Gains (Losses) on Other Securities, net of Taxes

     60,700       49,981       10,718  

Net Deferred Hedge Gains (Losses), net of Taxes

     (5,933     (4,615     (1,317
  

 

 

   

 

 

   

 

 

 

Total Valuation and Translation Adjustments

     54,767       45,365       9,401  
  

 

 

   

 

 

   

 

 

 

Total Net Assets

     565,995       561,705       4,289  
  

 

 

   

 

 

   

 

 

 

Total Liabilities and Net Assets

   ¥ 7,273,580     ¥ 7,076,682     ¥ 196,898  
  

 

 

   

 

 

   

 

 

 

 

2-41


Mizuho Trust & Banking Co., Ltd.

 

COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME

(selected items) OF MIZUHO TRUST & BANKING

 

     Millions of yen  
     For the six months ended
September 30, 2020
(A)
     For the six months ended
September 30, 2019
(B)
     Change
(A) - (B)
 

Ordinary Income

   ¥ 89,548      ¥ 95,561      ¥ (6,012

Fiduciary Income

     27,277        27,919        (641

Interest Income

     18,261        20,261        (2,000

Interest on Loans and Bills Discounted

     11,066        12,647        (1,581

Interest and Dividends on Securities

     6,154        6,532        (378

Fee and Commission Income

     29,087        29,143        (56

Trading Income

     488        508        (20

Other Operating Income

     7,749        15,278        (7,529

Other Ordinary Income

     6,684        2,449        4,234  
  

 

 

    

 

 

    

 

 

 

Ordinary Expenses

     73,729        73,859        (129

Interest Expenses

     4,797        6,801        (2,003

Interest on Deposits

     205        350        (144

Fee and Commission Expenses

     16,815        17,601        (785

Trading Expenses

     —          13        (13

Other Operating Expenses

     1,328        3,862        (2,533

General and Administrative Expenses

     40,447        39,656        791  

Other Ordinary Expenses

     10,340        5,923        4,416  
  

 

 

    

 

 

    

 

 

 

Ordinary Profits

     15,819        21,702        (5,883
  

 

 

    

 

 

    

 

 

 

Extraordinary Gains

     6,569        907        5,662  
  

 

 

    

 

 

    

 

 

 

Extraordinary Losses

     707        420        286  
  

 

 

    

 

 

    

 

 

 

Income before Income Taxes

     21,681        22,188        (507

Income Taxes:

        

Current

     2,181        3,107        (926

Deferred

     3,796        3,519        277  
  

 

 

    

 

 

    

 

 

 

Net Income

   ¥ 15,704      ¥ 15,562      ¥ 142  
  

 

 

    

 

 

    

 

 

 

 

2-42


Mizuho Trust & Banking Co., Ltd.

 

Reference

Statement of Trust Assets and Liabilities

 

As of September 30, 2020    Millions of yen  

Assets

   Amount     

Liabilities

   Amount  

Loans and Bills Discounted

     573,325      Money Trusts      24,649,662  

Securities

     123,858      Pension Trusts      3,355,051  

Beneficiary Rights to the Trusts

     64,114,439      Property Formation Benefit Trusts      4,645  

Securities held in Custody Accounts

     414,837      Investment Trusts      18,673,049  

Money Claims

     12,508,350      Money Entrusted Other than Money Trusts      1,895,964  

Tangible Fixed Assets

     8,460,577      Securities Trusts      13,664,620  

Intangible Fixed Assets

     356,170      Money Claims Trusts      11,401,488  

Other Claims

     251,043      Land and Fixtures Trusts      509,740  

Due from Banking Account

     1,336,263      Composite Trusts      14,468,123  

Cash and Due from Banks

     488,856      Other Trusts      5,375  
  

 

 

       

 

 

 

Total

     88,627,721     

Total

     88,627,721  
  

 

 

       

 

 

 

 

Notes:

 

1.  The statement is exclusive of the Trusts that are difficult to value monetarily.

  

2.  Beneficiary Rights to the Trusts include entrusted Trusts for asset maintenance of ¥62,128,124 million.

  

3.  Joint trust assets under the management of other companies: ¥185,613 million.

  

4.  There is no balance of Loans to Bankrupt Obligors, Non-Accrual Delinquent Loans,
or Loans Past Due for 3Months or More in the loans of trust accounts that guarantee principals in the agreement of ¥5,536 million.

  
Reference: Breakdown of Accounts of Money Trusts and Loan Trusts with the contracts of principal indemnification (including Trusts entrusted for asset management) are as follows:

 

Money Trusts    Millions of yen  

Assets

       Amount         

Liabilities

   Amount  

Loans and Bills Discounted

     5,536      Principal      839,565  

Securities

     1      Reserve      17  

Others

     834,115      Others      71  
  

 

 

       

 

 

 

Total

     839,653     

Total

     839,653  
  

 

 

       

 

 

 

 

2-43


Mizuho Trust & Banking Co., Ltd.

 

Reference

Comparison of Balances of Principal Items

 

     Millions of yen  

Items

   As of
September 30,
2020 (A)
     As of
March 31,
2020 (B)
     Change
(A) - (B)
 

Total Amount of Funds

     31,703,564        31,015,448        688,116  

Deposits

     3,133,125        3,096,295        36,830  

Negotiable Certificates of Deposit

     561,080        664,780        (103,700

Money Trusts

     24,649,662        24,065,825        583,836  

Pension Trusts

     3,355,051        3,183,854        171,197  

Property Formation Benefit Trusts

     4,645        4,692        (47

Loans and Bills Discounted

     4,039,292        4,001,989        37,302  

of Banking accounts

     3,465,966        3,367,475        98,490  

of Trust accounts

     573,325        634,513        (61,188

Securities for Investments

     819,544        1,089,515        (269,970

of Banking accounts

     695,685        958,624        (262,939

of Trust accounts

     123,858        130,890        (7,031

 

2-44


Mizuho Securities Co., Ltd.

 

COMPARISON OF NON-CONSOLIDATED BALANCE SHEETS (selected items)

OF MIZUHO SECURITIES

 

     Millions of yen  
     As of
September 30,
2020 (A)
    As of
March 31,
2020 (B)
    Change
(A) - (B)
 

Assets

      

Current Assets

      

Cash and Bank Deposits

   ¥ 300,052     ¥ 533,288     ¥ (233,236

Cash Segregated as Deposits for Customers and Others

     445,394       387,043       58,350  

Trading Assets

     7,877,065       6,461,814       1,415,251  

Operating Investment Securities

     32,991       33,430       (438

Receivables Related to Margin Transactions

     29,365       22,055       7,310  

Collateralized Short-Term Financing Agreements-Receivable

     4,500,354       4,296,231       204,123  

Advances Paid

     257       579       (322

Securities: Fail to Deliver

     47,446       12,971       34,475  

Short-Term Loans Receivable

     30,902       37,298       (6,395

Other Current Assets

     544,453       595,830       (51,377

Less: Allowance for Doubtful Accounts

     (7     (7     (0

Noncurrent Assets

      

Property and Equipment

     20,301       11,196       9,104  

Intangible Assets

     60,309       61,637       (1,327

Investments and Other Assets

     306,506       302,584       3,922  
  

 

 

   

 

 

   

 

 

 

Total Assets

   ¥ 14,195,394     ¥ 12,755,956     ¥ 1,439,438  
  

 

 

   

 

 

   

 

 

 

Liabilities

      

Current Liabilities

      

Trading Liabilities

   ¥ 4,996,970     ¥ 5,032,193     ¥ (35,222

Payables—Unsettled Trades

     142,093       61,668       80,425  

Payables Related to Margin Transactions

     50,720       47,395       3,324  

Collateralized Short-Term Financing Agreements-Payable

     5,153,013       3,660,235       1,492,777  

Deposits Received

     401,439       350,409       51,029  

Guarantee Deposits Received

     337,440       370,607       (33,166

Securities: Fail to Receive

     32,352       2,029       30,323  

Short-Term Borrowings

     918,467       1,035,215       (116,748

Commercial Paper

     297,000       319,000       (22,000

Bonds and Notes Due within One Year

     152,257       137,358       14,898  

Income Taxes Payable

     2,577       3,022       (445

Accrued Employees’ Bonuses

     9,921       13,531       (3,609

Provision for Variable Compensation

     394       816       (422

Provision for Bonus Point Redemption

     —         487       (487

Other Current Liabilities

     37,110       53,465       (16,355

Noncurrent Liabilities

      

Bonds and Notes

     579,437       620,079       (40,641

Long-Term Borrowings

     138,400       135,600       2,800  

Provision for Retirement Benefits

     20,398       19,828       569  

Other Noncurrent Liabilities

     3,013       2,111       902  

Statutory Reserves

      

Reserve for Financial Instruments Transaction Liabilities

     2,506       2,509       (3
  

 

 

   

 

 

   

 

 

 

Total Liabilities

     13,275,513       11,867,565       1,407,947  
  

 

 

   

 

 

   

 

 

 

Net Assets

      

Common Stock

     125,167       125,167       —    

Capital Surplus

     381,649       381,649       —    

Additional Paid—in Capital

     285,831       285,831       —    

Other Capital Surplus

     95,817       95,817       —    

Retained Earnings

     395,707       371,261       24,445  

Other Retained Earnings

     395,707       371,261       24,445  

Retained Earnings Brought Forward

     395,707       371,261       24,445  
  

 

 

   

 

 

   

 

 

 

Total Shareholders’ Equity

     902,524       878,078       24,445  
  

 

 

   

 

 

   

 

 

 

Net Unrealized Gains on (Operating) Investment Securities, net of Tax

     27,259       20,066       7,193  

Net Deferred Gains or Losses on Hedges, net of Tax

     (9,902     (9,754     (147
  

 

 

   

 

 

   

 

 

 

Total Valuation and Translation Adjustments

     17,357       10,312       7,045  
  

 

 

   

 

 

   

 

 

 

Total Net Assets

     919,881       888,390       31,491  
  

 

 

   

 

 

   

 

 

 

Total Liabilities and Net Assets

   ¥ 14,195,394     ¥ 12,755,956     ¥ 1,439,438  
  

 

 

   

 

 

   

 

 

 

 

2-45


Mizuho Securities Co., Ltd.

 

COMPARISON OF NON-CONSOLIDATED STATEMENTS OF INCOME

(selected items) OF MIZUHO SECURITIES

 

     Millions of yen  
     For the six months ended
September 30, 2020
(A)
    For the six months ended
September 30, 2019
(B)
    Change
(A) - (B)
 

Operating Revenues

   ¥ 183,483     ¥ 171,759     ¥ 11,723  

Commissions

     81,518       72,003       9,514  

Net Gain on Trading

     61,738       50,169       11,569  

Net Gain on Operating Investment Securities

     222       2,163       (1,941

Interest and Dividend Income

     40,004       47,423       (7,418
  

 

 

   

 

 

   

 

 

 

Interest Expenses

     31,396       44,926       (13,530
  

 

 

   

 

 

   

 

 

 

Net Operating Revenues

     152,086       126,833       25,253  
  

 

 

   

 

 

   

 

 

 

Selling, General and Administrative Expenses

     122,541       113,688       8,853  

Transaction-Related Expenses

     32,744       26,083       6,660  

Personnel Expenses

     45,919       41,300       4,619  

Real Estate Expenses

     10,456       11,842       (1,386

Administrative Expenses

     19,566       21,153       (1,586

Depreciation and Amortization

     10,229       9,458       770  

Taxes and Dues

     2,460       2,294       165  

Provision of Allowance for Doubtful Accounts

     (16     (25     9  

Other

     1,181       1,581       (399
  

 

 

   

 

 

   

 

 

 

Operating Income

     29,545       13,144       16,400  
  

 

 

   

 

 

   

 

 

 

Non-Operating Income

     3,324       3,479       (154

Non-Operating Expenses

     75       67       7  
  

 

 

   

 

 

   

 

 

 

Ordinary Income

     32,794       16,556       16,238  
  

 

 

   

 

 

   

 

 

 

Extraordinary Gain

     6,740       185       6,554  
  

 

 

   

 

 

   

 

 

 

Extraordinary Loss

     1,586       464       1,122  
  

 

 

   

 

 

   

 

 

 

Income before Income Taxes

     37,948       16,276       21,671  

Income Taxes:

      

Current

     2,449       1,263       1,186  

Deferred

     3,495       2,739       755  
  

 

 

   

 

 

   

 

 

 

Net Income

   ¥ 32,002     ¥ 12,274     ¥ 19,728  
  

 

 

   

 

 

   

 

 

 

 

2-46